CG Power and Industrial Solutions Ltd, part of the Murugappa Group, proposes to invest ₹230 crore in the expansion of its capacity.
The board of directors on Wednesday approved a proposal to expand the manufacturing capacity of motors at the company’s plants at Ahmednagar and Goa at an outlay of ₹230 crore, according to a statement.
The proposed expansion will be implemented in two phases over a period of four years.
The company reported 66 per cent rise in profit after tax at ₹178 crore for the quarter ended September 30, as compared to ₹107 crore in the year-ago quarter.
Revenue grew 17 per cent at ₹1,588 crore against ₹1,352 crore in Q2 of the previous fiscal. Its EBITDA (including other income) stood at ₹260 crore against ₹173 crore.
“Margins were higher on account of improved sales realisation, favourable product,” said a statement.
PAT grows
Profit before tax (PBT) grew 73 per cent at ₹237 crore compared with ₹137 crore in the September 2021 quarter.
Revenue and PBT recorded in the September 2022 quarter were the highest achieved in recent times, it said.
The Board of directors approved the scheme of arrangement for the transfer of ₹400 crore from general reserves to retained earnings subject to regulatory and statutory approvals.