Yesterday, Crompton Greaves slipped to its 52-week low on the back of disappointing fourth quarter numbers. CNBC-TV18's managing editor Udayan Mukherjee says, the stock is beginning to stabilise perhaps because of short positions lying on the counter.
In an interview with CNBC-TV18, SM Trehan and Laurent Demortier, managing director of the company spoke about current issues and future plans.
In an exclusive interview with CNBC-TV18, managing director of the company, SM Trehan says that they have seen lesser orders from the power sector. He holds that the results were affected both by the increase in volatility in commodity pricing and also the lower inflow of orders that added pressure on the pricing.
Crompton Greaves net profit for the fourth quarter (January to March) rose a meager 5% to Rs 285 crore from Rs 270 crore posted in the same quarter last year. The electrical equipment major’s net sales were up 16% at Rs 2,908 crore as against Rs 2,508 crore.
Crompton Greaves, which reported lower-than-expected fourth quarter numbers, cited pricing pressure and dearth of orders as the reason behind its poor porformance.
In an interview with CNBC-TV18, SM Trehan, MD, Crompton Greaves said that Power Grid's decision to award tenders separately for substations, increases it's the probability because now there are options to participate in the EPC and in the circuit breakers separately.
Speaking to CNBC-TV18, SM Trehan, managing director of the company said growth in power segment came in muted at 2%. "It is expect to be at 3-5% range in fourth quarter," he added.