The CG Power and Industrial Solutions stock fell in trade on Wednesday after the company posted a net loss for the quarter ended December 2018, combined with doubts over servicing of inter-corporate deposits and delay in the sale of Hungary business.
The analysts and investors are questioning the management of CG Power and Industrial Solutions on pledged shares as well as the Hungary business, which posted a loss of Rs 11 crore in Q3.
As far as inter-corporate deposits and loans are concerned, the management said that after the adjustment, the balance stood at Rs 270 crore against Rs 760 crore, which is reported as far as the numbers are concerned.
In Q3, the company write off Rs 108 crore on account of receivables plus exchange loss and the management is confident that going forward, there might not be further write-offs in the India business.
However, regarding international and west Asian operations are concerned, CG Power and Industrial Solutions is looking at probably more write-offs in the coming quarters.
On gross debt, CG Power and Industrial Solutions said it has reduced by Rs 200 crore on a quarter-on-quarter (QoQ) basis, but it still remains elevated at around Rs 2,650 crore.
The company's Q3FY19 net loss was of Rs 150.2 crore including a one-time loss at Rs 116.6 crore. It had reported a loss of Rs 28.2 crore in a year ago period.
Shares of CG Power and Industrial Solutions settled at Rs 23.25 apiece, down 32.22 percent on the BSE.