Crompton Greaves - Q2 FY13 Results First Cut - Microsec

Crompton Greaves announced its Q2 FY13 results on 2nd November 2012.

Crompton Greaves has reported a 63 percent fall in its consolidated net profit in second quarter FY 2013 on the back of continued weakness in its overseas operations. Net profit dropped to Rs 42.05 crore as against Rs 116 crore in same period last year.

Revenue grew by 8 percent to Rs 2924 crore but profits dipped. Power segment which contributes the bulk of business saw witnessed 88 percent fall in the profit. On a consolidated level power segment profit shrank to Rs 10 crore from Rs 93 crore in second quarter last year.

We believe the pressure on earnings to ease in FY13 and all the negativity has already factored in the current stock price. Thus we maintain BUY at the current level with a price Target of 161.

Source : Equity Bulls

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