Q1 2025 CG Power and Industrial Solutions Ltd Earnings Call Transcript
Key Points
- Sales grew by 19% year-on-year, reaching INR2,106 crore.
- Profit before tax increased by 27%, amounting to INR323 crore.
- Margins improved to 15.4% from 14.5% due to higher realizations, favorable product mix, and cost efficiencies.
- Free cash flow generated during the quarter was INR63 crore.
- Unexecuted order book as of June 30, 2024, was 44% higher year-on-year at INR7,054 crore.
- Margins in the Industrial Systems segment were lower year-on-year due to a higher mix of Railway Division and competitive bidding.
- Price realization in the LT motor segment was lower, impacting overall profitability.
- The railway tenders awarded had lower prices due to competitive intensity, compressing margins.
- The Europe market for exports was sluggish, affecting the acceleration of export growth.
- The company faces challenges in maintaining the high margins achieved this quarter in the upcoming quarters.
Ladies and gentlemen, good day, and welcome to the CG Power Limited Q1 FY25 earnings conference call hosted by IIFL Securities Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Gaurav Uttrani from IIFL Securities Limited. Thank you and over to you, sir.
Thank you, Neha. Good evening, everyone. On behalf of IIFL Securities, I welcome everyone to CG Power and Industrial Solution 1Q FY25 earnings call. We have the pleasure of having with us the senior management team of CG Power led by Mr. N Srinivasan, Managing Director; Mr. Amar Kaul, Managing Director and CEO; Mr. Susheel Todi, Chief Financial Officer; Mr. Ramesh Kumar, President, Industrial Division; Mr. Mukul Srivastava, President, Power Systems; Mr. Ajay Jain, Vice President, Transformer Division; and Mr. Chidambaram Balakrishnan, Vice President, Railways Divisions.
Without much of a delay, I will now hand over the floor to the management for their opening remarks,
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