CG Power and Industrial Solutions, now part of the Rs 41,713-crore Murugappa group, on Monday said that it has achieved a complete financial turnaround in its first full year of operations under the new management and has cleared net debt of Rs 650 crore, including that related to the CG House.

The company said that FY22 has been a defining year. All the businesses bounced back and performed to their potential, regaining the confidence of customers and vendors, it said in a regulatory filing.

It has achieved several landmarks such as highest-ever sales by motors division and railway division, highest-ever order booking for the transformer division and an order book of Rs 3,686 crore.

CG Power, which was acquired by Tube Investments of India (TII) of Murugappa group on November 26, 2020, had an outstanding debt of Rs 2,161 crore. It was asked to pay Rs 650 crore upfront to lenders as part of restructuring plan. TII also got a haircut of Rs 1,100 crore of original debt, as part of the acquisition scheme.

The company had recently used the sale proceeds of the property and internal cash accruals to clear debt. As on March 31, it had a debt of Rs 302 crore and cash and cash equivalents of Rs 452 crore, it said.

During Q3, the company realised `402 crore, including refund of security deposit, by selling land at Kanjurmarg. It also paid off the debt relating to CG House where its corporate house is located and got back the property free of encumbrances. The company has also settled the obligations pertaining to guarantees issued by the company to additionally secure the loans granted to its subsidiaries abroad, it said, adding that the loss-making subsidiaries have been closed.

For FY22, the company has posted a 9% dip in its standalone net profit at Rs 627 crore, while sales increased by 104% to Rs 5,159 crore. Free cash flow generated for the year was at Rs 392 crore.

For the fourth quarter, the net profit declined to Rs 109 crore from Rs 849 crore. Total sales for the period rose to Rs 1,407 crore from Rs 1,022 crore. Free cash flow generated for the quarter was Rs 86 crore. Term debt of Rs 235 crore was pre-paid out of internal accruals. The company also said that it had completed the recasting and audit of the accounts for the five years from FY15 to FY19.