Engineering major Crompton Greaves fourth quarter consolidated net profit plunged 75 percent to Rs 25.3 crore from Rs 100 crore, a year ago on account of higher expenses. The company posted 10 percent growth in its net sales at Rs 3387 crore compared to Rs 3087 crore in the same quarter last fiscal.
Total expenses of the company also shot up by more than 13 percent from Rs 2928.07 crore to Rs 3354.69 crore, mainly on higher inventories which accounted for Rs 176.92 crore.
The bottomline figure would have been much less if not aided by higher other income of Rs 5.14 crore (previous year Rs 31 lakh) and tax reversal of Rs 7.77 crore (previous year tax expense of Rs 39.63 crore). The interest cost also shot up from Rs 13.94 crore to Rs 20.82 crore.
The earnings before interest, tax, depreciation and amortization (EBIDTA) also more than halved to Rs 77.9 crore from Rs 213 crore in the previous fiscal. EBITDA margins were also down by 460 basis points to 2.3 percent from 6.9 percent earlier.
Shares of Crompton Greaves closed at Rs 96.85, down 1 percent on Friday.