CG Power’s Recent Financial Performance

CG Power has demonstrated a remarkable financial turnaround following its acquisition by the Murugappa Group in 2020. The company’s focus on operational efficiency, working capital management, and debt reduction has significantly improved its financial health.

Revenue Growth


For FY23, CG Power reported consolidated revenues of approximately ₹6,580 crore, marking a healthy growth from previous years. The increase in revenue was driven by strong demand for transformers, industrial motors, and automation products, particularly in the domestic market.

Profitability


The company’s EBITDA margins have improved considerably, rising to 16-18%, a significant jump compared to the sub-10% margins prior to the restructuring. For FY23, CG Power reported a net profit of around ₹730 crore, compared to losses incurred in the pre-acquisition phase.

Debt Position


One of the key highlights of CG Power’s financial revival is its debt reduction. The company, once saddled with significant debt, is now virtually debt-free, providing a strong balance sheet and improved credit ratings.

Cash Flows


The company has generated positive free cash flows, helping fund future expansions and capital expenditures without over-reliance on external financing.

Future Outlook


CG Power’s financial performance reflects strong execution and governance under the Murugappa Group. With robust demand in power transmission, industrial automation, and green energy sectors, CG Power is poised for consistent growth in revenues and profitability in the coming years.

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