Capacity expansion may drive gains for CG Power and Industrial Systems

Management expects power transformer capacity to reach 35k MVA by March 2025 and shared plans to take it to 40k MVA

The results of CG Power and Industrial Systems (CG Power) disappointed in terms of margins while witnessing strong order inflows. The company is focusing more on transformers rather than motors.

The board has cleared a qualified institutional placement (QIP) to raise Rs 3,500 crore.

CG Power reported a healthy 21 per cent year-on-year (Y-o-Y) revenue growth and a flat Y-o-Y adjusted profit before tax.

Cash position as of H1FY25 stands at Rs 900 crore. The industrial systems margin was weak, reflecting stiffer competition.

Order inflows were up 31 per cent Y-o-Y and 1.35 times revenues for H1FY25 (up 44 per cent