 "Crompton Greaves net dips 76% to Rs 15 cr")
Crompton Greaves’ consolidated net profit fell 76 per cent to Rs 15 crore in the June quarter of 2015-2016 over the same period last year due to continuing weakness in its overseas business.
Revenue fell eight per cent to Rs 3,165 crore. On a standalone level, net remained flat at Rs 126 crore, but sales and earnings before interest, taxes and depreciation of consumer products’ business grew as a result of the ongoing restructuring.
In April, it had announced the demerger and sale of its consumer products division to Temasek and Advent International and said it hoped to complete it by March 2016. Chairman Gautam Thapar will hold the chairman post in consumer products company post the demerger.
ALSO READ: Crompton likely to sell consumer arm at a discount
“We have begun segregating consumer products business from our other divisions and have started operating it as a company within a company,” Thapar told shareholders at the annual general meeting on Friday. As a result, it has been able to remove inefficiencies and consumer products revenue grew 18 per cent to Rs 970 crore and Ebitda increased 13 per cent to Rs 148 crore.
Also the company plans to exit its overseas power business and will remain domestic entity with a focus on power and industrial segments. The company will also expand its manufacturing capabilities and hopes to add a factory to manufacture 500kV transformers for overseas markets.
Revenue fell eight per cent to Rs 3,165 crore. On a standalone level, net remained flat at Rs 126 crore, but sales and earnings before interest, taxes and depreciation of consumer products’ business grew as a result of the ongoing restructuring.
In April, it had announced the demerger and sale of its consumer products division to Temasek and Advent International and said it hoped to complete it by March 2016. Chairman Gautam Thapar will hold the chairman post in consumer products company post the demerger.
ALSO READ: Crompton likely to sell consumer arm at a discount
“We have begun segregating consumer products business from our other divisions and have started operating it as a company within a company,” Thapar told shareholders at the annual general meeting on Friday. As a result, it has been able to remove inefficiencies and consumer products revenue grew 18 per cent to Rs 970 crore and Ebitda increased 13 per cent to Rs 148 crore.
Also the company plans to exit its overseas power business and will remain domestic entity with a focus on power and industrial segments. The company will also expand its manufacturing capabilities and hopes to add a factory to manufacture 500kV transformers for overseas markets.