Engineering company,
Greaves Cotton Limited reported revenue de-growth of 41% at Rs288cr in Q2FY21 as against Rs490cr in Q2FY20. The revenue for H1FY21 was Rs435cr against Rs967cr for the corresponding period previous year. With all structural changes, efficiencies gained at multiple levels & slow yet positive recovery the Q2 revenue show 96% growth over previous quarter of same year.
The company’s EBIDTA is at Rs17cr in Q2FY21 as against Rs59cr in Q2FY20. The EBIDTA for H1FY21 was negative Rs4cr against Rs120cr of H1FY20.
Loss After Tax is at Rs18cr in Q2FY21 as against Profit after Tax (PAT) of Rs45cr in Q2FY20. During the quarter the company has recorded exceptional expenses of Rs31cr on account employee separation cost and impairment of assets against exceptional income of Rs5cr in the previous year during the corresponding period. After tax Loss is at Rs42cr in H1FY21 PAT of Rs83cr in H1FY20.
The company said that with opening up operations across the country, Greaves has seen positive recovery with better performance in terms of closing pending business orders and fresh business enquiries. In the automotive business, the BSVI engine orders have grown with OE partners showing confidence for demand in the remaining part of the year.
“Market is slowly recovering with OEM confidence signaling positive growth for the rest of the year. We have leveraged this period to engage better with our Customers, Channel partners, Suppliers & Employees. Today we are stronger & financially stable owing to realignment of various structural costs & tighter focus with several initiatives like the closure of Ranipet Factory, optimizing peopleplant-productivity levels to meet the new demand. We are happy to mention that we have locked-in a leading Indian OEM for our Engine business,” Commenting on the company performance, Ajit Venkataraman, Executive Director, Greaves Cotton Limited, said.
Nagesh Basavanhalli resumes charge as Group CEO & MD, Greaves Cotton Limited has announced that Nagesh Basavanhalli will resume executive duties as the first Group CEO, with immediate effect. Basavanhalli will play an active role in the future growth of overall business (Greaves Cotton Limited and Greaves Mobility) and other strategic initiatives like Greaves Finance.
“As a diversified engineering company, Greaves Cotton has the opportunity to play a significant role in the rebuilding of India’s economy with its strength in local manufacturing, as we have a play in critical sectors like last mile mobility, energy, agriculture etc. We also want to be a significant contributor to the vision of Make in India, and the country’s transition to a green economy with our clean technology portfolio,” Nagesh Basavanhalli, said.
“Nagesh has played a pivotal role in the transition of Greaves with new strategic focus towards fuel agnostic technologies and e-mobility. We are confident Greaves will achieve many milestones under his new role as the Group CEO.” said Karan Thapar, Chairman, Greaves Cotton Ltd.
At around 10.57 am, Greaves Cotton Ltd was trading at Rs68.80 per equity share up by Rs0.9 or 1.33% from its previous closing of Rs67.90 per equity share on the BSE.