Murugappa Group firm CG Power and Industrial Solutions Ltd. said it has achieved financial turnaround in its first full year of operations ended March 22 and cleared net debt of ₹650 crore (including CG House debt).
This fiscal has been a defining year, seeing the complete operational and financial turnaround of the company. All the businesses bounced back and performed to its potential regaining the confidence of customers and vendors, it said in a regulatory filing.
The company achieved several landmarks such as highest-ever sales by motors and railway division, highest-ever order booking for the transformer division and an order book of ₹3,686 crore.
CG Power, which was acquired by Tube Investments of India (TII) on November 26, 2020, had an outstanding debt of ₹2,161 crore and it was asked to pay ₹650 crore upfront to lenders as part of restructuring plan. TII also benefited from a haircut of ₹1,100 crore of original debt.
Recently, the company used the sale proceeds of the property and internal cash accruals to clear the debts. As on March 31, it has a debt of ₹302 crore and cash and cash equivalents of ₹452 crore, it said.
During Q3, the company realised ₹402 crore including refund of security deposit, by selling land at Kanjurmarg. It also paid off the debt relating to “CG House” where its its corporate house is located and got back the property free of encumbrances.
For FY22, the company has posted a 9% dip in its standalone net profit at ₹627 crore, while sales increased by 104% to ₹5,159 crore. Free cash flow generated for the year was ₹392 crore.
For the fourth quarter, the net profit slumped to ₹109 crore from ₹849 crore. Total sales for the period rose to ₹1,407 crore from ₹1,022 crore. Free cash flow generated for the quarter was ₹86 crore. Term debt of ₹235 crore was prepaid out of internal accruals.
The company also said that it had completed the recasting and audit of the accounts for the five years from FY15 to FY19.