Murugappa Group's CG Power logs Rs 355 crore PAT, to expand at Rs 221 crore

The Murugappa Group company, CG Power and Industrial Solutions Limited on Friday said it has logged a net profit of Rs 355.24 crore for the second quarter of FY24.

The company also said it has chalked out capacity expansion of its different product lines at an outlay of Rs 221 crore.

In a regulatory filing, the company said for the quarter ended that September 30 it has posted an operational revenue of Rs 1,900.14 crore and a net profit of Rs 355.24 crore.

The company's Board also approved expansion of manufacturing capacity of: a) Switchgears at its plant in Nashik at Rs 155 crore; (b) Power Transformers at Bhopal at Rs 31 crore (for addition of 10,000 MVA capacity) and (c) Large Industrial Machines at Bhopal at Rs 35 crore.

The company said the capex will be met from internal accruals.According to CG Power, in August 2023, the company and JC Flowers Asset Reconstruction Company (JCFARC) (to which Yes Bank has assigned its stressed loans) entered into a Settlement Agreement for the pending litigations on the company, making a payment of Rs 42 crore.

JCFARC will unconditionally withdraw all the cases pending and initiated and the company will be fully discharged from all the obligations.