CG Power & Industrial Solutions Ltd (CG) has reported a 45 per cent year-on-year growth in outstanding order book position as of March 31, 2024.
In a press release, CG said that its unexecuted order book as of March 31, 2024, at Rs.6,276 crore was 45 per cent higher over the comparable Rs.4,319 crore as of March 31, 2023.
CG also said that margins were higher year-on-year at 15.1 per cent of sales in FY24 as against 14.1 per cent in FY23 on account of higher realization, favourable product mix, cost efficiencies and execution of export orders with better margins in Power systems and higher other income. This was partially offset by pricing pressure in Low tension motors business due to increased competition.
CG operates through two broad divisions – industrial systems and power systems. The outstanding order book of the industrial systems division was Rs.2,544 crore as of March 31, 2024, up 25 per cent over that in March 31, 2023. Further, the share of industrial systems in the overall outstanding order book declined to 40.5 per cent as of March 31, 2024 from 47.2 per cent as of the previous year. (see table).
The outstanding order book of the power systems division rose sharply by 64 per cent from Rs.2,279 crore as of March 31, 2023 to Rs.3,731 crore as of March 31, 2024. This division also commanded a much higher share in the outstanding order book, at 59.4 per cent as of March 31, 2024, as against 52.8 per cent as of March 31, 2023.
Business highlights
CG said its switchgear and transformer business achieved its highest-ever sales, order inflow and profits. Same was the case with the railway business. Besides, the motor business witnessed increase in market share, despite higher base and stiff competition.
Capex plans
In FY24, the board of directors of CG approved a capital expenditure (capex) plan worth Rs.155 crore for the switchgear plant in Nashik. Similar plans were approved for the power transformer plant (Bhopal, Rs.31 crore) and HT motors (Bhopal, Rs.35 crore). The total capex plan approved so far stands at Rs.662 crore, CG said.
OSAT facility
In March 2024, CG Power & Industrial Solutions Ltd announced the formation of a three-way joint venture to build and operate an OSAT (Outsourced Semiconductor Assembly and Test) facility in India. (Read more).
Also read: CG Forms Tripartite JV For OSAT Facility In India
Featured photograph (source: CG) shows CG’s HT motor manufacturing unit at Bhopal, Madhya Pradesh.
