Top takeaways from Q1FY17 :Recurring PAT (Rs 401mn vs. loss yoy) was inline with consensus but below our estimates. Earnings were aided by an unexpected trading profit (Rs 414mn) booked in the international power systems segment, implying a 44% margin for the business. The management expects this trading profit to taper through the year.  

Valuation: They maintain our Neutral rating with an SOTP?based price target of Rs 86 (unchanged), as see structural headwinds for CRG’s domestic power segment because of lack of new technology for high?end grid products.Also believe that current valuations (19x FY18 PE) not only adequately price in the impending uptick in the industrial business, but also ascribe a value to the potential sale of its automation business.