Crompton Greaves - First Cut - Microsec

Crompton Greaves announced its Q1 FY13 results on 20 July 2012. The company's Net Sales increased by 15% YOY to INR2811 crore but its EBITDA decreased by 8% YOY to INR167 crore . EBITDA Margin of the company decreased from 7.5% to 5.9% YOY. PAT of the company increased by 8% YOY to INR86 crore due to less charge of amortization amount of INR18.8 crore. Adjusted PAT of the company came down by 7% to INR73 crore. The company is still facing lot of pressure in the power system division where the EBIT margin still hovers around 2.6% showing no signs of recovery.

At the current level of INR130, we maintain 'AVOID' at the Stock till the company show any sign of improvement.

Source : Equity Bulls

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