Power equipment manufacturer Crompton Greaves Ltd suffered a year-on-year decline of 63 per cent in consolidated net profit in the three months ended September 30.

Crompton Greaves announced that that its net profit slipped to Rs 42.05 crore in the second quarter of current fiscal year, from Rs 116 crore in the corresponding period of previous year.

The company's consolidated revenue jumped 8 per cent to 2,920 crore, while operating profit slipped 40 per cent to 140 crore.

Operating profit margins dropped by 369 basis points (bps).

Analysts with Bank of America Merill Lynch wrote in a note, "Don't expect sharp recovery in profit margins in fiscal 2014 due to more restructuring costs expected in Belgium, which constitute 30% of overseas sales."

The combination of lower margins, losses at out of the country subsidiaries and poor execution forced the company to lower its guidance for the full fiscal year. The company slashed its Ebitda-growth guidance for the current fiscal from its previous guidance of 8 per cent to 5 per cent. It also cut its topline growth from 10-12 per cent to 8 per cent.

The company's poor performance in the second quarter disappointed investors, who dragged the stock down by more than 8 per cent. In addition, many brokerages downgraded it.