Greaves Cotton, one of India’s leading engineering companies has reported its financial revenue for Q1 FY2021. The company reported revenue of Rs 158.23 crore (-68%) as against Rs. 499.56 crore in for the same period last year, loss after tax of Rs. 30.86 crore (-189%) as against profit of Rs 34.50 crore.
The company says its revenue was impacted across businesses in the quarter due to the unprecedented Covid-19 pandemic, hence the results are comparable with the corresponding quarter last year as business scenarios have drastically changed beyond expectation.
In August the company saw conclusion of a VRS scheme at Ranipet plant, with a 100 percent uptake by the eligible workers, at a fair compensation. The charge for the VRS will be taken in Q2 results and conclusion of this will reduce annual operating costs substantially in subsequent quarter(s)/ years.
Commenting on result a company spokesperson said, “Our customer-centric approach and continued focus on keeping our partners safe yet connected has helped us to navigate through the unprecedented global crisis. While this was one of the tough quarters not just for us for the industry, we thank our OEM’s, end-customers, supply chain partners and employees who stood with us these in the challenging times. By pursuing innovation and staying invested on strategically important projects we kept building the momentum. Our new growth levers continued to contribute 23 percent in this quarter emphasising that we are moving in the right strategic direction.”
The company says in the last couple of years it has successfully diversified its business from just an automotive player to newer applications in non-automotive and the cleantech e-mobility domain. This has enabled it to grow consistently and remain steady with minimal impact despite disruptions.
Greaves Cotton says it is now spearheading the EV adoption in the country by building one of the fastest-growing EV product portfolios under Ampere Electric and expanding its footprint across the country even during post-Covid. Around 40 dealerships were added post unlock 1.0. The engineering major recently acquired 74 percent stake in e-rickshaw company Bestway.
Also read: Ampere Electric, Autovert Tech introduce battery subscription plan starting at Rs 1,990