Crompton Greaves tanks 8% post weak Q2 earnings

Power transformers major Crompton Greaves posted weak set of second quarter numbers post market hours on 7 December. While the company's total revenue increased. it reported a net loss in Q2.

The company's total income increased from Rs 1446.99 crore for the quarter ended 30 September, 2015 to Rs 1545.19 crore for the quarter ended 30 September, 2016.

Its operational performance too took a beating in the second quarter given the segment weakness. The company reported a net loss of Rs 10.41 crore in Q2 as against profit of Rs 10.58 crore.

The company's segment-wise performance saw little improvement as power systems and industrial systems remained the major revenue generators.

In another development, Crompton Greaves also informed that it has mutually agreed to terminate its deal with Pauwels Spaco Ltd, the SPV of first reserve (parties), for sale of its power business in Europe, North America, and Indonesia.

Reacting to the poor set of numbers, the shares of Crompton Greaves tanked 8 per cent intra-day to hit a low of Rs 60.20 before recovering a bit to trade at Rs 61.30 on the NSE.