Mumbai, August 13, 2020: Greaves Cotton Limited, one of India’s leading engineering companies, reported revenue at -68% at Rs. 158.23 crore in Q1FY21 as against Rs. 499.56 crore in Q1FY20. EBIDTA is at Rs. -26.70 crore in Q1FY21 as against Rs. 58.31 crore in Q1FY20, while loss after tax is at Rs. 30.86 crore in Q1FY21 as against profit after tax Rs. 34.50 crore in Q1FY20. Representing a change by -189%. The impact on revenue across businesses in this quarter was due to unprecedented impact caused by Covid and it cannot be compared with the corresponding quarter last year as business scenarios have drastically changed beyond expectation during and post-Covid. In August the company saw conclusion of a VRS scheme at Ranipet plant, with a 100% 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, Company spokesperson mentioned, “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 & 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% in this quarter emphasizing that we are moving in the right strategic direction.”
The Covid-19 pandemic continued to significantly impact the business in Q1FY21, however, with the proactive shift in approach and managing cost efficiently, the company ensured business continuity in these difficult times and kept the stakeholders engrossed. Lending a helping hand for the ecosystem in its full capacity, Greaves supported the COVID warriors with PPE Kits and masks, installed Gensets in the hospitals with quarantine facilities and undertaken sanitization process across multiple government hospitals.
In the last couple of years, the company has successfully diversified the business from just an automotive player to newer applications in non-automotive and the Cleantech e-mobility domain. This has enabled Greaves to grow consistently and remain steady with minimal impact despite disruptions.
Today, Greaves is spearheading the electric vehicle 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 are added post unlock 1.0. Lately, Ampere Electric added another milestone and strengthened its EV portfolio by acquiring 74% stake in e-rickshaw company. With this, the company is ready to fortify its presence in last mile commercial e-mobility domain & provide superior solution to the last mile employment seekers as individual buyers & ecommerce fleet operators with energy efficient e-2 wheelers & e-3 wheelers in cargo & passenger segment.
Further, the company is committed to accelerate and support the country’s transition by building robust EV ecosystem support across country. Today with more than 500+ Greaves Retail touchpoints, the company has emerged as one of largest one-stop shop & Mobility enabler for last mile vehicles. This vision has strengthened financing business with Greaves Finance.
