Despite a marginal increase in turnover, first half profits at Crompton Greaves fell by 45 per cent. Sales were up by 6 per cent, from Rs 612.93 crore to Rs 651.37 crore and net profit dropped from 21.40 crore to Rs 11.87 crore for the first six months ended September 30.
Profit before interest, depreciation and tax (PBDIT) stood at Rs 61.53 crore compared to Rs 67.71 crore for the same period last year. The company managed to keep cut interest costs by almost 14 per cent, from Rs 37.11 crore to Rs 32.10 crore.
Depreciation, however, soared by 91 per cent, from Rs 9.20 crore to Rs 17.56 crore. No provision has been made for tax as excess provision is being written back, said company sources.
K K Nohria, chairman, said that consumer products and industrial systems recorded a positive growth while growth in the digital business group was negative.
Exports have performed better in the first half of the year, he added.
Crompton Greaves will focus on exports to increase margins, Nohria said.
The power systems group sells transformers, switchgear & control engineering projects.
The industrial systems business is in motors, alternators, railway transportation including signalling, power generation equipment and other industrial systems. The consumer products group focuses on household electrical equipment like fans, lights and appliances, the digital division operates in areas of telecommunications and informatics.
