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CG Power Hit by Cyber Event, Q1 Profit Misses; Shares Dip

By ThePip DeskCG Power Hit by Cyber Event, Q1 Profit Misses; Shares Dip

CG Power reports a suspected cyber event impacting IT systems, with core operations unaffected. Q1 profit and revenue miss estimates, causing a 0.50% share drop on the BSE.

CG Power and Industrial Solutions Ltd announced a suspected cyber event on its IT systems on Tuesday, though its core operations remain unaffected. This development coincides with the company reporting first-quarter financial results that fell short of analyst expectations, leading to a 0.50% dip in its shares on the BSE.

The electrical engineering firm is actively collaborating with internal and external cybersecurity experts to investigate, remediate, and mitigate the suspected breach. Additionally, the Indian Computer Emergency Response Team has been notified regarding the incident.

First Quarter Financials Miss Estimates

For the quarter ending June, CG Power posted a consolidated net profit of ₹313 crore, representing a 16.4% increase year-on-year from ₹269.2 crore. However, this figure missed CNBC-TV18’s poll estimate of ₹349 crore.

  • Revenue from operations grew 14% year-on-year to ₹3,280.8 crore, up from ₹2,878 crore. This also fell short of the estimated ₹3,500 crore.
  • Operating performance was weaker than anticipated, with EBITDA increasing 4% to ₹397 crore from ₹381.7 crore, below the poll estimate of ₹472.3 crore.
  • The EBITDA margin narrowed to 12% from 13.3%, indicating pressure on profitability for the period.

Segmental Performance and Strategic Moves

The company’s Power Systems business was a significant growth driver, generating revenue of ₹1,398.2 crore. The Industrial Systems segment also contributed positively, with revenue rising to ₹1,789.5 crore.

Conversely, the nascent Semiconductor business reported revenue of ₹94 crore but incurred a loss of ₹50 crore. This marks a substantial increase from the ₹8.7 crore loss recorded in the same quarter last year, attributed to ongoing investments in the segment.

In a separate strategic move, CG Power’s board approved a brownfield expansion of its EHV GIS manufacturing facility in Vilholi, Nashik. This project, estimated at ₹35.2 crore, aims to double the plant’s manufacturing capacity to address a growing order pipeline and is expected to be completed within four to six months, financed by internal accruals or equity.

Shares of CG Power and Industrial Solutions Ltd concluded trading at ₹893.95, down by ₹4.45, or 0.50%, on the BSE following these announcements.

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