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Crompton Greaves reported a consolidated net profit of Rs 62 crore in third quarter FY 2014 as against Rs 189 crore loss for the same period last year. The company which earns about 45% of revenue from foreign subsidiaries has been able to improve its result due to reduction of losses in international operations.
Analysts were expecting net consolidated profit of around Rs 80 crore and a 10% growth in revenue. While the company increased its revenue by 12% to Rs 3351.97 crore (from Rs 2971.83 crore), it slipped in profit growth.
All its three business segments - power systems, consumer systems and industrial systems reported revenue and profit growth in third quarter. "The results in third quarter of last year were impacted due to restructuring of company's Belgian operations. There was an exceptional item of about Rs 120 crore in Q3 FY 2013. Excluding that the profit was around Rs 70 crore for that quarter. Crompton Greaves's foreign operation losses are declining and hence it is showing a profit,'' a sector analyst remarked.
The company stock closed at Rs 102.35 down 1.68%. The company declared second interim dividend of 40 paise per share.
