V Swaminathan, Director of Upstart Capital is positive on Crompton Greaves and Petronet LNG.Here is how he views the stocks on board:
On Crompton Greaves:
Crompton posted a very decent set of numbers. Its sales went up by 26%. The operating profit was up by 37.5%. All segments of the business seemed to be firing. Their power systems business and their consumer products business has seen a margin expansion. Power system comprises two-third of their business. The company has only seen a slight dip in the industrial systems business. The order flow expected over the next few years is high. Crompton is sitting on a good wicket.
On Voltas:
Voltas has an average set of numbers. Though Voltas’s topline is up, the operating numbers are almost flattish. They are up by about 6%. The Profit After Tax (PAT) numbers are up and inline with the sales numbers. The segment results show variations; the projects business is showing a dip in margins, whereas the unitary cooling segment is showing an uptick. Overall, there is a slight downward pressure on the margins but on the other side there is an increase in the order book and that is a good sign for any capital goods business.
On Petronet LNG:
Petronet this time was a miss. They didn’t do as much of spot cargo business as they usually do, Though the sales were up marginally by about 6%, the PAT witnessed a small dip QoQ basis. That’s about a 10% drop.
But going forward Petronet’s expansion is coming through within this year. The increased regasified volumes this year should keep their results on track for the entire year. So I am quite okay with Petronet, though this quarter was a miss
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