Views on Crompton Greaves 3QFY2014 results - Angel Broking

Views of Mr. Amit Patil (Research Analyst – Capital Goods, Angel Broking) on Crompton Greaves 3QFY2014 results:

Top-line ahead of estimates, however, bottom-line disappoints

"For 3QFY2014, Crompton Greaves reported 12.8% yoy growth in its consolidated top-line to Rs. 3,352cr (ahead of our estimate of Rs. 3,299cr), mainly on account of 17.3% yoy growth in revenue from power system segment to Rs. 2,132cr. However, operating performance was below our expectations, with CG reporting EBITDA of Rs. 167cr compared to our estimate of Rs. 191cr. Although OPM expanded by 492bp yoy to 5.0%, it was lower than our expectation of 5.8%, due to lower than expected margin in power system and industrial segments. Consequently, Net Profit came in at Rs. 60cr compared to loss of Rs. 69cr in 3QFY2013 (however, lower than our estimate of Rs. 78cr). We maintain Buy rating on Crompton Greaves with target price under review."

Source : Equity Bulls

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