TII arm’s sales surge to ₹954 crore
CG Power and Industrial Solutions Ltd. has turned a standalone net profit of ₹44.5 crore for Q1 of FY22.
The firm, acquired by Tube Investments of India (TII) last year, had posted a net loss of ₹421.8 crore in the year-earlier period, the firm said in a filing.
Revenue from operations surged more than fourfold to ₹954 crore. The results included an exceptional item of about ₹5 crore on account of foreign exchange losses.
Material costs impacted margins on account of the continuous rise in prices of key commodities such as steel and copper.
However, the company was able to partially mitigate the impact through prior procurement and pricing strategies.
There was no material impact on the group due to COVID-19, it added.
However, it said that during the quarter, operations at its plants were impacted due to lockdown and movement restrictions imposed in the wake of COVID second wave.
During the quarter, one of the erstwhile lenders to an erstwhile subsidiary had demanded entire outstanding amount of corporate guarantee worth ₹148.5 crore against principally agreed terms of settlement and this is being contested, the company said.
The company has made a provision of ₹33.63 crore in relation to such settlement. (With PTI inputs)
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