CG Power says switchgear orderbook up 64%; polls may impact ordering in H2
CG Power and Industrial Solutions hopes to counter the challenges posed by geopolitical developments and upcoming elections by focussing on strong execution.
Natarajan Srinivasan, MD and CEO of CG Power and Industrial Solutions sees a combination of factors, including geopolitical tensions and upcoming elections, influencing the company's performance.
In a conversation with CNBC-TV18, Srinivasan said despite the challenges, strong execution will help them maintain both the topline and bottom line.
In the second quarter, the company's standalone net sales grew close to 20% to ₹1,900.14 crore. Net profit close to doubled on-year to ₹355.24 crore.
Srinivasan noted that with the power segment, which encompasses transformers and switchgear, unexecuted order books have seen remarkable growth. The unexecuted order book for transformers has surged to ₹1,958 crore, marking a 74% year-on-year (YoY) increase, while for switchgear, it has jumped 64% YoY to around ₹1,278 crore.
The company retained its revenue guidance in the range of ₹7,000-7,500 crore for the fiscal year 2024.
CG Power and Industrial Solutions recently announced an expansion of capacity in the switchgear segment. The consolidated order book now stands at ₹5,229 crore.
When it comes to the railways and motor segments, Srinivasan foresees ordering continuing on a quarter-on-quarter basis. He mentioned, "It will probably be the same unless in railways we are going to get some project orders."
The company's stock has risen close to 27% over the last six months and over 46% over the last 12 months. The company's shares have been on a positive trend since it announced its debt- free status in March.
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(Edited by : Shweta Mungre)
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