Tuesday, July 19, 2011

Crompton Greaves Q1 cons net down 59%; shares tumble

Electrical equipment maker Crompton Greaves’ first quarter consolidated net profit slumped 59% year-on-year to Rs 79.47 crore, missing street estimates by a wide margin due to a sharp drop in earnings in the power systems segment.

Its consolidated net sales for the three-month period were up 6% to Rs 2,437.74 crore.

Analysts on average had expected Crompton Greaves’ first quarter net profit at Rs 209 crore on revenue of Rs 2,580 crore, according to a CNBC-TV18 poll.

Crompton Greaves shares plunged following the disappointing results announcement and ended down 14% at Rs 208.30 on NSE.

The company’s operating margins in the April-June quarter were down sharply at 7.46% from 12.91%.

Crompton Greaves’ earnings were also hurt by raw material costs, which were up 34.5% to Rs 1,610.37 crore.

During the first quarter, earnings before interest and taxes (EBIT) from the company’s Power Systems segment slumped 74% from a year ago to Rs 40.08 crore. Consumer Products EBIT was down 6.1% to Rs 75.37 crore, while Industrial Systems EBIT fell 15% to Rs 50.85 crore.

Source: http://www.moneycontrol.com/

Thanks & Regards;
Neha Mehta
Relationship Manager
DENIP Consultants Pvt. Ltd

No comments:

Post a Comment