CG Power aligns capital expenditure of Rs 135 crore in current fiscal year, Energy News, ET EnergyWorld
The investment plan would be used to improve production at its manufacturing facilities, CG Power and Industrial Solutions said in a statement.
The board of directors of the company has approved a capital expenditure program of Rs 135 crore to be implemented during the current fiscal year. The capital expenditure will be devoted to balancing, debottlenecking and modernization of factory facilities to improve production and productivity, ”he added. the company said.
Tube Investments of India acquired CG Power on November 26, 2020 and the board of directors of CG Power reconstituted with Vellayan Subbiah becoming the new chairman and Natarajan Srinivasan was appointed managing director.
Regarding financial performance, CG Power reported Rs 673.77 crore for the quarter ending March 31, 2021 against a net loss of Rs 184.36 crore in the corresponding quarter of the previous year.
For the year ending March 31, 2021, the self-sustaining net loss was Rs 208.93 crore compared to a net loss of Rs 1,799.20 crore in the same period of the previous fiscal year.
Total autonomous income for the quarter under review rose to Rs 1,036.06 crore from Rs 472.20 crore recorded a year ago.
For the year ending March 31, 2021, the total autonomous income was Rs 2,568.06 crore compared to Rs 3,226.36 crore recorded in the previous fiscal year.
Margins were affected due to the sharp increase in material costs (5% impact of sales) as the company was unable to purchase or cover these items earlier due to financial difficulties.
According to the company, the activities of all manufacturing sites have been revived by providing working capital based on need.
The fourth quarter of the previous fiscal year (January-March 2021) was the first of recent times that manufacturing plants operated with sufficient working capital, although the full impact could not be calculated for the entire quarter.
The industrial systems division reported sales growth of 47% for the quarter under review to Rs 740 crore while order intake was higher in the quarter at Rs 814 crore.
“The unfulfilled order book in March 2021 was Rs 1,673 crore,” he noted.
The Power Systems division saw 40% quarter-over-quarter growth at Rs 282 crore and order intake during the quarter was higher on an annual basis at Rs 814 crore.
The unfulfilled backlog in the power systems division was Rs 1,057 crore.
Regarding the overseas operations, CG Power said that apart from the wholly owned subsidiaries in Sweden, Germany, the Netherlands and the United States, the rest of the subsidiaries were in the process of being closed.
“Entities under investigation will be closed after obtaining the necessary approvals from the authorities,” the statement said.
The company has fully cooperated with the investigation by the Serious Fraud Investigation Office (SFIO) and once the results of the investigations are known, further action will be taken if necessary, CG Power said.