Greaves Cotton reports loss of Rs 18 crore for Q2 FY2021, sees return to recovery through partnerships and tie-ups

by Autocar Pro News Desk , 05 Nov 2020

Greaves Cotton, a leading engineering company has reported its financial result for Q2 FY2021 and H1 FY2021. The company reported revenue of Rs 288 crore, down 41 percent in Q2 FY2021, loss of Rs 18 crore as against a profit after tax of Rs 45 crore for the same period last year.

The company says with all structural changes, efficiencies gained at multiple levels and slow yet positive recovery the Q2 revenue show 96 percent growth over previous quarter of same year. For the first half of FY2021, the company says it recorded exceptional expenses of Rs 31 crore on account employee separation cost and impairment of assets against exceptional income of Rs 5 crore in the previous year during the corresponding period. After tax Loss is at Rs 42 crore in H1FY21 against PAT of Rs 83 crore in H1FY20.

With opening up operations across the country, Greaves Cotton says it has seen positive recovery with better performance in terms of closing pending business orders and fresh business enquiries. In the automotive business, the BS VI engine orders have grown with OE partners showing confidence for demand in the remaining part of the year. The Greaves non-auto small engines widely used in the Marine, Farm, Genset, Construction and other industrial applications have also received good demand thanks to the Atmanirbhar India drive, as initiated by the government. The Greaves Aftermarket and Care business also has seen uptick as footfalls at service workshops and counter sales for spares pick up especially in smaller towns.

For its electric mobility business which comprises Ampere Electric scooters and ELE e-rickshaws, the company says it continues to propel significant growth as the need for affordable and reliable personal mobility vehicles sees a good uptick following safety protocols and increasing commutation requirements in the last-mile. Ampere e-scooters have gained significantly in the B2B bike rentals and e-commerce deliveries with increasing bulk orders from various business partners across the country. In the e-rickshaw segment, the ELE brand records a substantial jump marking a promising entry in the commercial mobility segment.

Commenting on the company performance, Ajit Venkataraman, executive director, Greaves Cotton said, “Market is slowly recovering with OEM confidence signalling positive growth for the rest of the year. We have leveraged this period to engage better with our customers, channel partners, suppliers and employees. Today we are stronger and financially stable owing to re-alignment of various structural costs and tighter focus with several initiatives like the closure of Ranipet Factory, optimising people-plant-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.”

Also read: Nagesh Basavanhalli returns to Greaves Cotton as Group CEO and MD