Electrical equipment manufacturer Crompton Greaves is working on a business plan to improve the performance of three power distribution divisions in Nagpur bagged from the Maharashtra State Electricity Distribution Company in September 2007. |
Senior company executives said that attempts are being made to bring down the transmission and distribution losses, currently at 45 per cent, over the next few years, but didn't reveal operational targets due to the confidentiality clause. |
Besides controlling the operating costs, the company is planning to rationalise staff at its power distribution facilities in Nagpur. |
The management is also focussing on aggressively expanding its estimated three lakh consumer base in Nagpur. Analysts at brokerage houses point out that such an expansion could take place, thanks to the fast growing cargo hub in the Nagpur region. |
B R Jaju, chief financial officer, Crompton Greaves, said, "We are focussing on bringing operational parameters in the Nagpur distribution business in line with peers." |
It is understood that the company has only recently been able to overcome the legal challenges to its foray into power distribution from local associations in Nagpur. |
Meanwhile, in the December 2007 quarter, Crompton Greaves' standalone operating profit grew 41.8 per cent y-o-y to Rs 116 crore, whereas its adjusted turnover rose 12.5 per cent to Rs 915.2 crore. |
Improved sales in the industrial and consumer divisions contributed to the profit growth. The operating profit margin rose by 260 basis points to 12.7 per cent in the last quarter. |