CG Power & Industrial Solutions (CGPOWER) Q2 24/25 earnings summary

Executive summary

• Sales grew 19% year-over-year to INR 2,270 crores, with consolidated revenue for Q2 FY25 at ₹2,412.69 crore and six-month revenue at ₹4,640.21 crore.

• Order intake surged 43% year-over-year to INR 3,996 crores; unexecuted order backlog rose 50% to INR 7,831 crores.

• Profit after tax for Q2 FY25 was ₹219.63 crore, compared to ₹242.29 crore in Q2 FY24; six-month profit after tax was ₹460.87 crore.

• Strategic expenses of INR 36 crores impacted margins, mainly due to acquisition-related costs.

• Acquired controlling stake in G.G. Tronics India and entered agreement to acquire Renesas RF Components business for $36 million.

Financial highlights

• Q2 FY25 consolidated total income: ₹2,441.79 crore; six-month total income: ₹4,699.75 crore.

• Q2 FY25 profit before tax: ₹293.80 crore; adjusted PBT margin would have been 14.7% excluding strategic expenses.

• Free cash flow for the quarter was INR 227 crores, with FCF to PAT at 102%.

• Return on capital employed (ROCE) quarter-to-quarter was 33%.

• Total assets as of September 30, 2024: ₹6,656.48 crore; total equity: ₹3,692.46 crore.

Outlook and guidance

• Management expects margin recovery in industrial and railway segments, with power segment margins to remain strong.

• Expansion into semiconductor design and railway safety systems expected to drive future growth.

• Capacity expansions in transformers, motors, and switchgear underway, with completion expected over the next year.