The company continued its growth momentum with consolidated revenues at Rs 495 crore in Q3FY21 Shares of Greaves Cotton
advanced 16 per cent to Rs 114.75 on the BSE in the intra-day trade on Wednesday, having rallied 32 per cent in the past one week, after the company reported a standalone net profit of Rs 20.92 crore in December quarter (Q3FY21) on the back of a strong operational performance. The company, engaged in industrial machinery segment, had posted a net loss of Rs 23 crore in the previous quarter.
The company continued its growth momentum with consolidated revenues at Rs 495 crore in Q3FY21 and earnings before interest, taxes, depreciation, and amortization (Ebitda) at Rs 49 crore in Q3FY21. This represented around 50 per cent growth in revenues over the previous quarter. Ebitda margin during the quarter recovered to 12 per cent from 6.1 per cent in Q2FY21.
"The company’s BSVI or Bharat Stage VI engines have shown superior performance in the automotive business, and have been well accepted in the Cargo 3 wheeler segment where growth has rebounded. In other segments like Non-Auto, Aftermarket the growth has been back to pre-Covid levels. Meanwhile, in the E-Mobility segment, the company has crossed last full year sales in nine months despite Covid-19 induced lockdown," the management said in a statement.
The company has fortified its base with emphasis on building resilient cost structures and consolidation of engine operations at Aurangabad. Furthermore, new electric vehicles (EV) capacity expansion plans in South India will help us provide best-in-class electric vehicles & help accelerate overall EV adoption in India, it added.
At 02:26 pm, the stock was trading 15 per cent higher at Rs 113.65 on the BSE, as compared to a 0.61 per cent decline in the S&P BSE Sensex. Trading volumes on the counter jumped over 6-fold as a combined 21.6 million equity shares had changed hands on the NSE and BSE till the time of writing of this report.