Engineering giant sees growth across segments, with automotive engine sales up 31% and exports rising to 12% of Engineering revenue. Diversification strategy pays off as company expands product range and enters new markets, boosting performance across divisions.
09 Aug 2024 | 793 Views | By Sarthak Mahajan
Greaves Cotton Limited has reported its financial results for the first quarter of fiscal year 2025. The company's standalone revenue increased by 12% year-over-year to Rs 445 crore, with EBITDA also growing by 12% to Rs 50 crore. The standalone profit before tax was Rs 49 crore. On a consolidated ...
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Greaves Cotton Limited has reported its financial results for the first quarter of fiscal year 2025. The company's standalone revenue increased by 12% year-over-year to Rs 445 crore, with EBITDA also growing by 12% to Rs 50 crore. The standalone profit before tax was Rs 49 crore. On a consolidated basis, revenue rose by 13% to Rs 640 crore.
The company's Engineering and Retail businesses saw growth of 15% and 7% respectively. Excel, a subsidiary, reported revenue of Rs 63 crore, representing a 13% increase year-over-year.
During the quarter, Greaves Cotton Limited experienced growth in various segments. Automotive engine sales increased by 31%, with market share rising to 57%. The company introduced new alternate fuel engines and transitioned to CPCB IV+ gensets. Their fuel-agnostic approach has expanded their product range and global reach, with exports now accounting for 12% of Engineering revenue. Exports to the United States and European Union have notably increased.
Greaves Retail has expanded its OE partnerships and piloted an e-commerce delivery model for 2WMB parts. The company has also established new businesses in areas such as construction equipment. At GEMPL, two-wheeler volumes increased by 10% and three-wheeler volumes by 19% quarter-over-quarter, driven by the introduction of Nexus, a high-performance family scooter, and supply chain improvements for ELTRA.
Akhila Balachandar, CFO of Greaves Cotton Limited, stated that the Q1 FY25 performance reflects the success of their diversification strategy. She noted that the revenue growth demonstrates their commitment to broadening their product range and market reach. The company's fuel-agnostic approach and expansion into new sectors have enhanced their market position and boosted exports.