CG Power shares locked in 5% lower circuit after Q1 earnings

Shares of CG Power and Industrial Solutions were locked in 5 percent lower circuit at Rs 21.85 on BSE in early trade on September 9, a day after the company reported a consolidated net loss of Rs 262.88 crore for Q1FY21.

The company's loss decreased marginally sequentially as in the March quarter of FY20, the company's loss had come at Rs 288.06 crore. In the June quarter for the previous financial year, the company's loss was Rs 73.60 crore.

Revenue saw a strong fall during the June quarter.

Total consolidated revenue from operations for Q1FY21 stood at Rs 362.73 crore, against Rs 1,773.73 crore in Q1FY20 and Rs 616.25 crore in Q4FY20.

Meanwhile, media reports suggested that the Securities and Exchange Board of India (Sebi) has sent notices to CG Power and Industrial Solutions after a forensic audit confirmed that funds were diverted from the company.

The forensic audit commissioned by BSE was given to the company for comments on 4 September.

“According to notices sent by Sebi, certain directors, employees of CG Power and related entities had perpetrated financial irregularities in the company. These include use of certain assets of the company as collateral, including being co-borrower and/or guarantor, for enabling third parties to obtain loans without authorization," Mint quoted a person, familiar with the matter, saying so.