Q2 2025 CG Power and Industrial Solutions Ltd Earnings Call Transcript
Key Points
- CG Power & Industrial Solutions Ltd (BOM:500093) reported a 19% year-over-year sales growth for Q2 FY25, indicating strong business performance.
- The company achieved its highest ever adjusted PBT for Q2 at INR344 crores, showcasing effective financial management.
- Order intake for the quarter was INR3,196 crores, reflecting a 43% growth year-over-year, which suggests robust demand and business expansion.
- The unexecuted order backlog increased by 50% year-over-year to INR7,831 crores, providing a strong pipeline for future revenue.
- The company completed the acquisition of G.G. Tronics India Private Limited, which is expected to enhance its capabilities in the railway sector with new development orders.
- The PBT margin was lower at 13.1% of sales due to strategic expenses, including INR36 crores on acquisition-related costs.
- Margins in the railway business were impacted due to tender-based pricing pressures, affecting overall profitability.
- The Industrial Systems segment experienced a decline in PBIT margins, attributed to strategic expenses and a shift towards the railway business.
- The Motors business faced continued weakness, particularly in the LT segment, due to market conditions and high market share impact.
- Capacity expansions in motors and switchgear are expected to take more time, potentially delaying revenue contributions from these segments.
Ladies and gentlemen, good day, and welcome to the CG Power and Industrial Solutions Limited Q2 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. Akshit Gangwal from IIFL Securities Limited. Thank you, and over to you, sir
Thank you, Sejal. Good afternoon, everyone. On behalf of IIFL Securities, I welcome everyone to CG Power and Industrial Solutions 2Q FY25 Earnings Call. We have the pleasure of having with us the senior management team of CG Power led by Mr. Amar Kaul, Managing Director and CEO; Mr. Susheel Todi, Chief Financial Officer; Mr. Mukul Srivastava, President, Switchgear Business; Mr. Ajay Jain, Vice President, Transformers Division; Mr. Chidambaram Balakrishnan, Vice President, Railways Division; Mr. Indraneel Dhaneshwar, Vice President Motors Division; and Mr. Sriram Rangarajan, Head of Consumer Products business.
Without much of a delay, I will now
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