Murugappa Group company CG Power and Industrial Solutions Ltd reported a strong performance for the March quarter, with consolidated net profit rising 32% year-on-year to ₹362 crore.
Aggregate sales for the quarter grew 25% to ₹3,442 crore, driven by robust execution and momentum across key business segments.
Segment performance drives growth
The Industrial Systems segment posted a 5% increase in revenue to ₹1,791 crore, supported by healthy order inflows and a strong backlog in the Motors and Drives business.
The Power Systems segment emerged as the key growth driver, with revenue surging 50% year-on-year to ₹1,487 crore.
Meanwhile, the company’s recently launched semiconductor business contributed ₹156 crore in revenue during the quarter, marking early traction in the new vertical.
Margins tempered by semiconductor investments
The company indicated that margin expansion, led by strong standalone performance, was partly offset by continued investments in building capabilities and talent for the semiconductor business.
These investments had an impact of ₹38 crore on the semiconductor segment, translating to a margin impact of around 110 basis points.
Order book remains robust
Order intake for the quarter stood at ₹4,505 crore, registering a growth of 23% year-on-year, reflecting sustained demand across segments.
The unexecuted order backlog rose sharply by 61% to ₹17,107 crore, providing strong revenue visibility going forward.
Bottom line
Strong growth in Power Systems and a healthy order pipeline underpin CG Power’s momentum, even as strategic investments in semiconductors weigh on near-term margins but position the company for long-term growth.