CG Power & Industrial Solutions (CGPOWER) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue grew to ₹2,227.52 crore, up 19% year-over-year, with record sales, EBITDA, and PBT.

• Profit after tax from continuing operations rose to ₹241.24 crore, with PBT at ₹335.67 crore, and margins improved to 15.4%.

• Free cash flow for the quarter was INR 63 crores; annualized return on capital employed reached 39%.

• Unexecuted order book as of June 30, 2024, rose 44% year-over-year to INR 7,054 crores.

• Leadership transition: Natarajan Srinivasan retires, succeeded by Amar Kaul as Managing Director and CEO.

Financial highlights

• Total income for Q1 FY25 was ₹2,260.67 crore, up from ₹1,896.15 crore in Q1 FY24.

• PBT: INR 323 crores, up 27% year-over-year; EBITDA and PBT at highest levels in recent quarters.

• Margins: 15.4% of sales, up from 14.5% last year; net profit margin for Q1 FY25 was approximately 10.8%.

• Consolidated PBT: INR 336 crores (15.1% of sales).

• Current tax increased to INR 50.6 crores from INR 2.6 crores last year as prior losses are now fully absorbed.

Outlook and guidance

• Order book strength and robust inquiry pipeline in power business (INR 13,000–14,000 crores in inquiries).

• Railway business expected to grow at least 40% this year based on awarded tenders.

• H2 expected to see recovery in industrial systems as demand picks up post-elections.

• Margins in power systems expected to remain good, with high-teens margin (16–18%) seen as possible.

• Management reaffirmed commitment to growth and operational efficiency, with continued focus on core segments.