Greaves Cotton reports Rs 65 crore standalone net profit for Q3 FY24, up 74% YoY

Greaves Cotton, one of India's leading diversified engineering companies, has reported standalone revenue of Rs 443 crore for the third quarter of FY2024, which marks a 21% YoY increase. While the consolidated revenue was Rs 665 crore, up 30% YoY, the company has reported an improvement in standalone margins with quarterly EBITDA at Rs 67 crores and profit of Rs 65 crore, which is a YoY growth of 74 percent.

As per the company, its diversified strategy spanning various business sectors is paying dividends. Greaves Engineering's expansion into the USA and EU markets and its diversification into mechatronics and electronics with a focus on green fuels has helped drive growth as also its growing presence in the electric two-wheeler market.

In the September-December 2023 period, Greaves Electric Mobility sold an estimated 12,585 electric scooters, as per Vahan retail sales data. In CY2023, combined sales of 66,901 units – Ampere Vehicles (42,900 units) and Greaves Electric Mobility (24,001 units) – give the company fifth rank and a market share of 7.80% in a field of over 180 players, behind Ola Electric, TVS Motor Co, Ather Energy and Bajaj Auto. In January 2024, Greaves Cotton’s EV arm has sold a total of 2,529 e-scooters, maintaining its fifth rank. Greaves Electric Mobility states that it has expanded its dealer network to around 440 showrooms across the country.

On January 23, 2024, Greaves Retail announced its latest venture – EV Solutions. This covers the EV spectrum from charging infrastructure to aftermarket components and batteries. Under its ‘evfin’ electric vehicle ownership platform, Greaves Finance signed an alliance with ElectricPe, a leading player in EV solutions, to enable easy EV customer financing.

On February 5, AutoEVmart, a multi-brand EV retail store by Greaves Retail, the retail and distribution unit of Greaves Cotton, announced its partnership with Zero21, the Hyderabad-based energy solutions company.  The partnership aims to accelerate the sales and distribution of Zero21's electric autorickshaws and associated EV spare parts, which are now available across Greaves Retail's multi-brand AutoEVMart stores and spares distribution network. This tie-up will make Zero21's electric autorickshaws more accessible through Greaves’ network of over 100 strategically located AutoEVMart outlets in Tier 1, 2 and 3 markets. 

According to Greaves Cotton, the B2C businesses contributed 58% to its overall revenues in Q3 FY2024, reflecting the success of the diversification strategy. 

Commenting on the Q3 FY2024 performance, Nagesh Basavanhalli, non-executive vice-chairman of Greaves Cotton, said: "Our diverse portfolio and strategy, underpinned by a commitment to fuel-agnostic solutions, have played a pivotal role in driving our advancements. Synergistic collaboration with Excel Controlinkage is bringing in new capabilities and opening newer avenues of growth for Greaves Engineering. Greaves Retail fortified our presence in the aftermarket.  Our enduring success is rooted in a steadfast focus on modern capabilities, our value propositions and our ability to fulfil the requirements of our diverse customer base." 

Ms. Akhila Balachandar, CFO, Greaves Cotton, added: "In Q3, our standalone result has once again demonstrated a resilient performance, achieving noteworthy results. We have witnessed commendable 21% year-on-year growth in revenues and an impressive 73% year-on-year surge in EBITDA, underscoring our commitment to sustainable financial success.  Our relentless focus on operational efficiency has further contributed to margin improvement. With a solid foundation and a firm dedication to excellence, we are optimistic that our success will endure in the upcoming quarters, positioning us well to capitalise on exciting business prospects."