Crompton Greaves announced its second quarter numbers, wherein the consolidated net profit came in Rs 116 crore, a whopping 45.5% fall from Q2FY11. Its consolidated net sales were up 13% at Rs 2,705 crore versus Rs 2,398 crore (YoY).
The Crompton Greaves numbers are in line with our expectations, said Shailesh Kanani, research analyst of Angel Broking to CNBC-TV18 in an interview. According to him, the main problem for the company is on the margin front. "The outlook remains bleak for segments in which Crompton does business," he added.
Last time, Kanani had factored in that FY12 would be bad with 30% degrowth. He also indicated that the company would see a gradual recovery in fiscal year 2013. "Due to the continuous interest rate hike and high inflationary pressure, we need to revise our number for FY13," he pointed out. Angel Broking maintains a neutral rating on the stock. Here is the edited transcript of his interview. Also watch the accompanying video. Q: What are your preliminary observations with Crompton
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
