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| Edited By: Kailash Babar |Source: DNA |Updated: Mar 30, 2018, 03:14 AM IST
Crompton Greaves Ltd will continue to look at acquisitions even as its earlier overseas buys weigh on the company’s sales.
At the company’s 73rd annual general meeting on Monday, chairman Gautam Thapar reiterated that acquisitions would continue to be a part of the company’s growth strategy going ahead.
The Mumbai-based Crompton Greaves has acquired 7 companies over the past 5 years to plug technological gaps, beef up product portfolio, and expand presence in Europe and US. Six of these acquisitions were overseas.
But these companies have underperformed the company’s standalone performance as order inflows dried up and customers delayed delivery of orders due to the global economic slowdown.
The power equipment and consumer goods maker on Monday reported sales of Rs 1340 crore for the first quarter of 2010-11, up 14.4% on year. The company’s net profit rose 23.9% to Rs 140 crore in the quarter. The company’s consolidated performance was weighed down by international subsidiaries. Consolidated net sales for April-June stood at Rs 2300 crore, a modest 4.8% growth. Consolidated net profit rose 19% to Rs 190 crore.
Crompton Greaves’ overseas arms include Belgium’s Pauwels International NV, Hungary’s Ganz Energetika Ltd, Ireland’s Microsol Holdings Ltd, US’ MSE Power Systems Inc, France’s Societe Nouvelle de Maintenance Transformateurs, and UK’s Power Technology Solutions Ltd. Crompton Greaves has also concluded an arrangement for the acquisition of 3 businesses of Nelco Ltd for Rs 92 crore in April.
Thapar expects Crompton Greaves to report lower sales growth in 2010-11, as against 2009-10, but sees margins improving.
The company reported standalone net sales of Rs 5,280 crore in 2009-10, up 14.6% on year. The company’s consolidated net sales for the year ended March was Rs 9,140 crore, up 4.6% on year. In view of the recovery seen in order inflow and sales execution in the recent quarters, the company plans consolidated capital expenditure of Rs 645 crore in 2010-11, and Rs 430 crore in 2011-12, Thapar said. The company operates in 3 business verticals—power systems, industrial systems, and consumer products.
NewsWire18
