Margin trajectory among key triggers for CG Power and Industrial Solutions

CG Power and Industrial Solutions (CG Power) met consensus estimates with revenues of ₹2,750 crore but missed operating and net profit expectations due to rising commodity costs, one-off expense of ₹15 crore on outsourced semiconductor assembly and testing (OSAT) and low-margin railways contracts.

 

Consolidated revenue was up 26 per cent to ₹2750 crore, operating profit grew 28 per cent to ₹360 crore while net profit rose 23 per cent Y-o-Y to ₹290 crore.

 

The industrial segment and power system segments reported revenue growth at 21 per cent and 28 per cent Y-o-Y respectively.

 

The free cash flow or FCF was