CG H1FY15 consolidated net profit up 13% at Rs. 134 crore

Avantha Group Company CG reported Consolidated Revenue of Rs. 6,872 crore for the half-year ended September 30, 2014 up 7% as against Rs 6,436 crore on September 30, 2013. The net profit for the period stood at Rs. 134 crore up 13% as against Rs. 118 crore in H1FY14.

CG bagged orders worth Rs. 5,405 crore in H1FY15 and the UEOB (un-executed order backlog) stood at Rs. 9,108 crore as on September 2014.

CG’s Board of Directors in a meeting held today has approved the demerger of the Consumer Business to a separate listed company. Other than increasing shareholder value, the demerger will provide fresh impetus to both the entities to pursue their individual growth strategies and improve the competitiveness in their respective markets. The demerger will be through by the end of next year subject to necessary regulatory and legal approval.

Commenting on the results, Avantha Goup Company CG’s CEO and Managing Director Laurent Demortier said, “The quarter gone by was satisfactory with good order intake from almost all the geographies. Power and Automation businesses continue to see positive growth. The restructuring exercise undertaken in Europe has started translating into operational and financial efficiencies.”

“We have taken an important step with the demerger of the Consumer Business. This will create an enabling platform for financing growth of respective businesses and generating long-term value for our shareholders.” Mr. Demortier added.

Highlights:

• CG’s Power business segment recorded revenue of Rs. 4,157 crore up 7% bagging orders worth Rs. 4,308 crore in H1FY15
• Orders in Europe grew by 40% to reach Rs.1,949 crore
• Middle East and Africa also witnessed 39% growth with orders worth Rs. 500 crore in H1FY15
• Further strengthening the strategy of making India as CG’s manufacturing hub, export orders from India grew by 18% at Rs. 575 crore