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Crompton Greaves gains on new order win

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Capital Market
Last Updated : Jan 21 2015 | 11:15 AM IST

Crompton Greaves rose 0.73% to Rs 194.35 at 10:33 IST on BSE after the company bagged $26 million contract from Indonesia for supplying power equipment.

The announcement was made after market hours yesterday, 20 January 2015.

Meanwhile, the BSE Sensex was up 124.39 points, or 0.43%, to 28,909.06

On BSE, so far 2.39 lakh shares were traded in the counter, compared with an average volume of 7.74 lakh shares in the past one quarter.

The stock hit a high of Rs 196.50 and a low of Rs 193.50 so far during the day. The stock hit a 52-week high of Rs 231 on 10 September 2014. The stock hit a 52-week low of Rs 101.65 on 29 January 2014.

The stock had outperformed the market over the past one month till 20 January 2015, surging 6.93% compared with Sensex's 5.16% rise. The scrip, however, underperformed the market in past one quarter, rising 1.98% as against Sensex's 8.91% rise.

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The large-cap company has an equity capital of Rs 125.35 crore. Face value per share is Rs 2.

Crompton Greaves said the company has sealed a deal with PT PLN (Perusahaan Listrik Negara) Indonesia, for the manufacture and supply of 37 units of 60MVA, 30MVA and 150/20kV Power Transformers. Valued at $26 million, Crompton Greaves' power transformers will be installed across PT PLN's transmission network, in 36 different substations in Sumatra, Java, Bali, Kalimantan and the Sulawesi islands of Indonesia. This project is being funded by IBRD - World Bank, in collaboration with the Government of Indonesia, for the purpose of strengthening Indonesia's power networks, Crompton Greaves said.

The project scope includes the design, manufacturing, factory testing, site installation and testing, and the pre-commissioning of the transformers over a period of 18 months, Crompton Greaves said.

PT PLN is the sole government-owned corporation in electricity generation, transmission and distribution in Indonesia and is one of the largest state-owned enterprises.

Commenting on receiving this prestigious order, Avantha Group Company Crompton Greaves' CEO and Managing Director Laurent Demortier said: This new order is in line with our strategic intent of establishing Crompton Greaves as a key provider of high-voltage transformers in the South East Asian market. We look forward to being a part of many more collaborative efforts that involve building robust power transmission networks, in Indonesia and the rest of Asia.

Crompton Greaves' consolidated net profit rose 19.1% to Rs 69.59 crore on 5.8% growth in net sales to Rs 3430.32 crore in Q2 September 2014 over Q2 September 2013.

Crompton Greaves is an engineering conglomerate with diverse portfolio of products, solutions and services ranging from high-end power and industrial equipments and solutions, to consumer products and home appliances, addressing myriad needs. It has manufacturing facilities in nine countries across Asia, Europe and North America.

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First Published: Jan 21 2015 | 10:40 AM IST

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