‘Savings in procurement, higher productivity, lower finance costs spurred profit’
‘Savings in procurement, higher productivity, lower finance costs spurred profit’
CG Power and Industrial Solutions Ltd. a subsidiary of Tube Investments of India, reported a 146% rise in standalone net profit for the first quarter ended June to ₹124 crore on savings in procurement, increased productivity and reduction in finance costs on account of loan repayment.
Revenue from operations grew 63% to ₹1,559 crore, with industrial systems accounting for ₹1,106 crore and power systems making up the balance, the firm said in a regulatory filing.
During the period, TII exercised its option to subscribe to 8.52 crore equity shares by paying the warrant subscription money of ₹55 crore. Post the allotment, TII shareholding stood at 58.05%.
The company directed the proceeds towards operations and expansion of the business, working capital and general corporate purposes.
CG said it repaid remaining term debt of ₹100 crore out of internal accruals and the term loans now stand paid in full.
The board approved a capital expenditure of ₹210 crore for FY23, to be spent on expansion, debottlenecking, modernising existing facilities, R&D, IT and Environment, Health & Safety.
Shares of the company fell ₹1.80, or 0.81%, to ₹220.20 on the BSE.
