Q3 2025 CG Power and Industrial Solutions Ltd Earnings Call Transcript
Key Points
- CG Power & Industrial Solutions Ltd (BOM:500093) reported a 28% year-over-year growth in sales, reaching INR2,389 crore for the quarter.
- The company achieved a significant 61% year-over-year increase in orders, totaling INR3,636 crore, marking the highest order intake for the quarter ever.
- Return on capital employed was strong at 34%, indicating efficient use of capital.
- The company announced a greenfield expansion for power transformer capacity, aiming to increase capacity to 85,000 MVA by FY '27-'28, reflecting confidence in future demand.
- CG Power's subsidiary, G.G. Tronics, secured a prestigious order for the Locomotive TCAS, valued between INR500 crore to INR600 crore, showcasing growth in the railway segment.
- The Industrial segment's PBIT margin decreased to 12.5% from 13.9% last year, primarily due to a skew towards the lower-margin railway business.
- Despite growth in the motors business, the overall industrial market remains challenging, with a need for strategic initiatives to maintain growth.
- The company faces margin pressures in the railway segment, impacting overall profitability despite increased order volumes.
- The location for the new power transformer capacity expansion has not yet been finalized, which could delay project timelines.
- There is uncertainty regarding the impact of new technological developments, such as China's DeepSeek, on the company's semiconductor manufacturing plans.
Ladies and gentlemen, good day, and welcome to the Q3 FY25 earnings conference call of CG Power. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Ms. Renu Baid Pugalia, the Senior Vice President, Research. Thank you, and over to you, ma'am.
Thank you. A very good evening to everyone. On behalf of IIFL Capital, I'd like to welcome the senior management team for 3Q FY25 earnings call of CG Power and Industrial Solutions. From the management, we have with us Mr. Amar Kaul, Managing Director and CEO; Mr. Susheel Todi, Chief Financial Officer; Mr. Mukul Srivastava, President with and EPD Division; Mr. Ajay Jain, Vice President, Transformer business; Mr. Chidambaram Balakrishnan, VP, Railway Business; Mr. Indraneel Dhaneshwar, Vice President, Motors Business; Mr. Sriram Rangarajan, EVP Consumer Products Business; and Mr. Maria EVP Drives & Automation and Industrial Motors business. Without taking much time, I now hand over the call to Mr. Amar
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