CG Power & Industrial Solutions Ltd.'s shares soared over 8% after its net profit beat estimates despite falling in the third quarter, after adjusting for previous year's gains.
The net profit of the company stood at Rs 240.5 crore in the third quarter, compared to Rs 747.5 crore during the previous year. Analysts tracked by Bloomberg had a consensus estimate of Rs 255 crore.
Profit of the company was inflated in the previous year, due to the Rs 551-crore profit from discontinued operations. This was added to consolidated net profits. If one compares CG Power's Q3 FY25 net profits to Q3 FY24 profits adjusted for the line item, the company's bottom line has increased 22%. The company's Q3 FY25 net profit was also impacted by higher tax expenses.
The company's power systems segment saw a 42% year-on-year increase in revenues to Rs 920 crore in Q3. Its industrial systems segment rose 20% on an annual basis.
CG Power Share Price
CG Power Ltd. stock rose as much as 8.32% during the day to Rs 622.80 apiece on NSE. It was trading 8.02% higher at Rs 621.05 apiece, compared to a 0.59% advance in the benchmark Nifty 50 as of 10:25 a.m.
It has risen 33.18% in the last 12 months. The total traded volume so far in the day stood at 5.3 times its 30-day average. The relative strength index was at 41.94.
Six of the nine analysts tracking the company have a 'buy' rating on the stock and three suggest a 'sell', according to Bloomberg data. The average 12-month analysts' consensus target price on the stock is Rs 717.25, implying an upside of 18.8%.
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