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Shares of CG Power and Industrial Solutions slump 30% after Q3 net loss

Operational revenue during the quarter under review grew 12 per cent to Rs 1,720 crore, as against Rs 1,537 crore in the corresponding quarter of the previous fiscal

Deepak Korgaonkar  |  Mumbai 

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Shares of and Industrial Solutions ended nearly 30 per cent lower on Wednesday at Rs 23.75 on the BSE, after the company reported a consolidated net loss of Rs 150 crore in the December 2018 quarter.

The counter hit its 52-week low of Rs 23 on the BSE in intra-day trade before recovering partially. The Sensex, on the other hand, slipped 0.3 per cent to 36,034.

The performance in the recently concluded quarter was impacted mainly on account of an exceptional loss of Rs 117 crore.

The Gautam Thapar-led Avantha Group company had reported a loss of Rs 28 crore in the corresponding period of the previous fiscal.

Operational during the quarter under review grew 12 per cent to Rs 1,720 crore, as against Rs 1,537 crore in the corresponding quarter of the previous fiscal. Ebitda (earnings before interest, taxation, and amortisation) margin remained flat at 8.6 per cent year-on-year.

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The results include a loss of Rs 22.64 crore, gain on curtailment of gratuity liability due to change in scheme of Rs 14 crore and a provision for certain receivables of Rs 108 crore, where the management believes that the recoveries are uncertain.

Meanwhile, the board of directors of the company, at its meeting held on February 12, 2019, approved partial settlement of outstanding against 50 per cent of brand loyalty payable by the company in perpetuity aggregating to Rs 411 crore, and accepted re-schedulement of the balance loan to be settled by May 2019.

Consequently, the company’s liability towards stands reduced to 0.50 per cent from the contracted royalty of 1 per cent of its consolidated

“As on December 31, 2018, the company has outstanding given by a wholly owned subsidiary amounting to Rs 730 crore to affiliate. The board had approved these to be on arm’s length basis. The board had on November 13, 2018 accepted a defined repayment schedule for such including reduced future annual brand royalties payable by the Company,” and Industrial Solutions said while announcing its consolidated

First Published: Thu, February 14 2019. 01:06 IST
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