InvestorQ : How did CG Power managed to dip deep into losses during the Mar-20 quarter?
Mahima Roy made post

How did CG Power managed to dip deep into losses during the Mar-20 quarter?

Answer
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Aditi Sharma answered.
4 months ago


CG Power and Industrial Solutions reported widening of net losses to Rs.288 crore for the Mar-20 quarter. The company had reported a net loss of Rs.189 crore in the same period last year. Total income for the fourth quarter reported a sharp fall to Rs.637 crore as compared to Rs.2006 crore, largely on the back of weak industrial demand.

For the fiscal year 2019-20, CG Power reported net loss of Rs.2167 crore, which is almost a four-fold rise in the last 1 year. Total income for the full year also fell sharply by over 35% to Rs.5158 crore. The company has guided a very uncertain future in the next one year and is not able to predict the future impact on business operations at this juncture.

For now, the primary focus is to get the debt restructured. It is in active discussions with its lenders for a resolution plan for its debts. The Inter-Creditor Agreement or the ICA has already been executed by 11 out of the 14 lenders that have supplied fund-based and non-fund facilities to the company. Its sustenance predicates on an early ICA.