CG Power and Industrial Solutions Ltd., a Murugappa Group company, announced that it has achieved a financial turnaround in its first full year of operations ending 22nd March, posting net debt of £650m (including debt from CG House) has redeemed.
This fiscal year was a pivotal year in which the company experienced a complete operational and financial turnaround. All companies rebounded and realized their potential by regaining customer and vendor confidence, a regulatory filing said.
The company achieved several milestones, including highest-ever sales in the engines and railway divisions, highest-ever order intake for the transformers division, and an order backlog of ₹3,686 crore.
CG Power, which was acquired by Tube Investments of India (TII) on 26 November 2020, had outstanding debts of £2,161m and was ordered to pay £650m up front to lenders as part of the restructuring plan. TII also benefited from a ₹1,100 crore haircut of the original debt.
Recently, the company used the proceeds from the sale of the property and internal cash to pay down the debt. As of March 31, it has debts of £3.02 million and cash and cash equivalents of £452 million, it said.
During the third quarter the company raised £4.02bn from the sale of land in Kanjurmarg, including the return of the security deposit. It also paid off the debt related to CG House, where its headquarters are located, and recovered the property unencumbered.
For FY22, the company saw its standalone net profit fall 9% to £627 billion, while revenue rose 104% to £5,159 billion. Free cash flow generated for the year was ₹392 crore.
In the fourth quarter, net profit plummeted to £109m from £849m. Total revenue for the period increased from ₹1,022 billion to ₹1,407 billion. Free cash flow generated for the quarter was ₹86 crore. Term debt of ₹235 crore was prepaid from internal provisions.
The company also said it had completed the rewrite and audit of the accounts for the five years from FY15 to FY19.