CG Power & Industrial Solutions has taken a significant step towards expanding its transformer manufacturing capabilities in Western India. The company has successfully secured a land allocation for its new greenfield transformer manufacturing facility in Sehore, Madhya Pradesh.

Land Allocation Details

The M.P Industrial Development Corporation Limited (MPIDC) has granted CG Power a 99-year lease for approximately 45.13 acres of undeveloped land. The allocated land is located in Village-Jahangirpura, Tehsil-Sehore, District Sehore, Madhya Pradesh.

Facility Specifications

The new transformer manufacturing facility is planned to have a capacity of 45,000 MVA (Mega Volt Ampere). This development marks CG Power's strategic expansion into transformer manufacturing in the western region of India.

Background and Timeline

The decision to establish this new transformer plant was initially made by CG Power's board. Following this decision, the company applied for land allocation to the MPIDC for the proposed greenfield project.

Official Communication

In an official intimation to the stock exchanges, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, CG Power's Company Secretary and Compliance Officer, Sanjay Kumar Chowdhary, confirmed the receipt of the land allotment letter from MPIDC.

Strategic Importance

This land acquisition is a crucial milestone for CG Power, as it paves the way for the company to strengthen its position in the transformer manufacturing sector. The new facility is expected to enhance CG Power's production capabilities and potentially contribute to meeting the growing demand for transformers in Western India and beyond.

The establishment of this greenfield project demonstrates CG Power's commitment to expanding its manufacturing footprint and could potentially create new employment opportunities in the region.

As the project progresses, investors and industry observers will likely keep a close watch on CG Power's execution of this significant expansion plan and its impact on the company's future growth trajectory in the power equipment sector.

CG Power & Industrial Solutions , a leading player in the power and industrial equipment sector, has reported robust financial results for the first quarter, demonstrating significant growth across key metrics.

Financial Highlights

The company's consolidated revenue from operations surged by 29% year-over-year (YoY) to ₹2,878.00 crore, compared to ₹2,228.00 crore in the same period last year. This impressive growth was driven by strong performances across its business segments.

Profitability also saw a notable improvement, with consolidated net profit rising by 11% YoY to ₹267.00 crore, up from ₹241.00 crore in the previous year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to ₹409.00 crore, marking a 14% growth compared to ₹360.00 crore in the previous year.

Segment Performance

Power Systems

The Power Systems segment demonstrated exceptional growth, with sales increasing by 43% YoY to ₹1,070.00 crore. This segment's profitability also improved significantly, with PBIT (Profit Before Interest and Tax) rising to ₹225.00 crore, representing a margin of 21.1% compared to 19.9% in the same quarter last year.

Industrial Systems

The Industrial Systems segment reported a 16% YoY growth in sales, reaching ₹1,574.00 crore. However, the segment's PBIT margin decreased to 10.9% from 13.4% in the previous year, primarily due to rising commodity prices and changes in the business mix.

Order Book and Future Outlook

CG Power's order intake for the quarter grew impressively by 62% YoY to ₹5,138.00 crore. The company's unexecuted order backlog as of June 30 stood at ₹13,072.00 crore, representing a substantial 82% increase compared to the same period last year. This robust order book provides strong visibility for future revenue growth.

Key Developments

1. The company secured its largest single order for the Transformers business, valued at approximately ₹641.00 crore, from PowerGrid Corporation of India Limited.

2. CG Power's subsidiary, G.G. Tronics India Private Limited, received an order worth ₹148.00 crore for the Station Train Collision Avoidance System (TCAS) from North Western Railways.

3. The company successfully completed a Qualified Institutional Placement (QIP) of equity shares, raising ₹3,000.00 crore. The issue was oversubscribed by more than 3 times, attracting participation from both Indian and global marquee investors.

Management Commentary

Commenting on the results, Mr. Vellayan Subbiah, Chairman of CG Power & Industrial Solutions Limited, stated, "We are pleased to report a strong start to the fiscal year, with all-time high quarterly standalone revenue and profit before tax. Our focus on operational excellence and strategic growth initiatives continues to yield positive results across our business segments."

The company's Managing Director and CEO, Mr. Natarajan Srinivasan, added, "The robust order intake and growing order backlog reflect the strong demand for our products and solutions. We remain committed to leveraging our technological capabilities and market position to drive sustainable growth and create value for our stakeholders."

With its strong financial performance, growing order book, and strategic initiatives, CG Power & Industrial Solutions Limited appears well-positioned to capitalize on the opportunities in the power and industrial equipment sectors in the coming quarters.