The company achieved several milestones such as highest-ever sales by the motor and the railways divisions and the highest-ever order booking for the transformer division.
Tube Investment of India’s subsidiary CG Power and Industrial Solutions Ltd., (CG Power) has become a debt free after repaying its entire term loan.
The group acquired controlling stake in the cash-strapped firm in November 2020 for ₹700 crore and started turning it around.
The company declared and paid interim dividends after a gap of seven years. It prepaid its remaining term loan of ₹100 crore and pre-redeemed the non-convertible debentures worth ₹200 crore (out of internal accruals) and has become debt-free, said managing director N. Srinivasan during an earnings call.
“FY23 was another record-breaking year, and the company built on its sales and delivered across financial and operational parameters,” he said.
During FY23, CG Power reported consolidated revenue of ₹6,973 crore and net profit of ₹963 crore. It generated free cash flow of ₹749 crore and order intake of ₹7,828 crore.
According to him, the company achieved several milestones such as highest-ever sales by the motor and the railways divisions and the highest-ever order booking for the transformer division.
The consolidated results for FY23 included the performance of operating subsidiaries at Sweden, Germany, and the Netherlands and other non-operating holding subsidiaries.
CG Power has decided to divest its investment in the wholly owned subsidiary QEI LLC in USA and has engaged a third party to find a suitable buyer and presently expects to complete the divestment in FY24.
The Board decided to expand the manufacturing capacity of motors plants at Ahmednagar and Goa an outlay of ₹230 crore and transformers plant in Bhopal and Malanpur an investment of ₹126 crore.
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