Greaves Cotton Q1 FY2017 revenues up 5%, bullish on future growth

Greaves Cotton, one of India’s leading engineering companies which makes diesel and petrol engines and farm equipment, has reported revenues of Rs 445 crore for the quarter ended June 30, 2016 as against Rs 424 crore for the quarter ended June 30, 2015. EBITDA for the quarter ended June 30, 2016 is Rs 60.4 crore as against Rs. 61.5 crore for the same period last year, recording an EBIDTA margin of 13.6% during the current quarter.

The Profit After Tax for the quarter ended June 30, 2016 is Rs 39 crore as against Rs 44 crore for the corresponding period last year.

Commenting on the results, Sunil Pahilajani, MD and CEO, said “Despite a challenging market environment, the company with its sustained focus on various lines of business has recorded revenue growth of 5% in the quarter ended June 30, 2016 over the corresponding period last year. This has been possible due to strategic initiatives on launching new range of solutions, enhancing service quality and entering new geographies. This is to be seen in the context of the weak revenue growth in the immediate past quarters. Contributing to the higher revenue is robust growth in the farm equipment business and the auxiliary power business.”

Elaborating on the new product development initiatives, Pahilajani said, “One of our key strengths has been our strong distribution network across the country. This has been traditionally used to supply spare parts and service to meet the needs of over 4 million customers. With the recently announced foray into a wider range of spare parts and consumables under the Greaves brand name, we are providing a reliable and quality alternative that delivers value to all stakeholders. Greaves has become a one-stop solution provider for most parts requirements in the 3-wheeler passenger and commercial vehicle segments. Greaves is also ready with a new range of multi-cylinder engines that offer a wide range of solutions for payloads up to 3.5 tonnes. This opens up new vistas of growth for the organisation.”