Diversified engineering company, Greaves Cotton Ltd, reported a standalone revenue of Rs 467.52 crore in Q2FY25, marking a 1.95% increase from Rs 458.58 crore in September 2023. However, quarterly net profit declined significantly, down 68.75% to Rs 38.56 crore from Rs 123.40 crore in the same period last year.
The company’s consolidated revenue for the quarter ended September was Rs 705 crore. It reported a net loss of Rs 14 crore in Q2FY25 versus a net loss of Rs 375 crore in the year ago period.
Standalone EBITDA also saw a decrease, standing at Rs 68.71 crore, a drop of 4.53% from Rs 71.97 crore in September 2023. Additionally, the company’s Earnings Per Share (EPS) fell to Rs 1.66 from Rs 5.32 year-over-year.
Cumulatively, for H1FY25, the company reported a consolidated revenue of Rs 1,345 crore. Revenue from the company’s Excel division contributed ₹61 crore. Standalone revenue grew 7% year-over-year to Rs 912 crore. EBITDA for H1 was recorded at Rs 109 crore, and standalone Profit Before Tax (PBT) reached ₹106 crore.
The company attributed strategic diversification and growth across its business segments, as reasons for the increase in standalone half-yearly revenue.
The Engineering and Retail segments showed year-over-year growth of 6% and 7%, respectively, for H1 FY25, supported by strategic expansion in both sectors. Excel’s integration has been instrumental in enhancing the Engineering segment’s scope, bringing H1 FY25 combined revenues from Greaves standalone and Excel to ₹1,036 crore. The EBITDA for these business units collectively stood at ₹144 crore for the six months.
The Electric Mobility segment also showed a good performance, with revenue of ₹175 crore in Q2 and ₹302 crore in H1, bolstered by new product launches and an aim towards profitability.
Akhila Balachandar, Chief Financial Officer of Greaves Cotton Ltd said the company’s Q2FY25 results underscore the robustness of its diversification strategy and the momentum it is building across businesses.
“Our performance in Retail, Engineering, and Excel, alongside the promising growth in Electric Mobility, reflects our agile approach to meeting diverse market demands. Our fuel-agnostic strategy continues to expand our reach and adaptability, reinforcing our confidence in the path we’ve charted. This momentum reaffirms our commitment to delivering consistent value for our stakeholders,” Balachandar said.