CG Power & Industrial Solutions shows strong financial performance in Q1 2024, with growth in PBT and net sales.

CG Power & Industrial Solutions, a leading player in the capital goods industry, has recently announced its financial results for the quarter ended March 2024. The company has shown a positive performance in this quarter, with a significant improvement in its financial score from 4 to 7 in the last 3 months.

One of the key highlights of the quarter is the growth in Profit Before Tax (PBT) which has increased by 260% to Rs 258.92 crore compared to the average PBT of the previous four quarters at Rs 71.93 crore. This indicates a strong and positive trend in the near term for the company.

Another positive aspect is the increase in Net Sales, which has reached its highest at Rs 2,191.72 crore in the last five quarters. This shows a positive trend in the company's sales performance in the near term.

However, there are some areas that need improvement for CG Power & Industrial Solutions. The Profit After Tax (PAT) for the quarter has fallen by -6% to Rs 238.36 crore compared to the average PAT of the previous four quarters at Rs 253.58 crore. This indicates a negative trend in the near term for the company's profitability.

Additionally, the Non-Operating Income for the quarter has increased to its highest at Rs 48.11 crore in the last five quarters. While this may seem like a positive aspect, it is important to note that this income is from non-business activities and may not be sustainable in the long run.

Overall, CG Power & Industrial Solutions has shown a positive financial performance in the quarter ended March 2024. With a strong PBT and net sales growth, the company is on the right track. However, it is important for the company to address the decline in PAT and the reliance on non-operating income to ensure sustainable growth in the future. Based on these financial results, MarketsMOJO has given a 'Buy' call for the stock of CG Power & Industrial Solutions.