Improved Q3 Results of Greaves Cotton; Stock up 32% in 1 Week
In the intra-day trade on Wednesday, shares of Greaves Cotton advanced 16 percent to Rs 114.75 on the BSE, having rallied 32 percent in the past one week after the company reported a standalone net profit of Rs 20.92 crore in the December quarter (Q3FY21) on the back of robust operational performance. The company, engaged in the 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 percent growth in revenues over the previous quarter. Ebitda margin during the quarter recovered to 12 percent from 6.1 percent 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, emphasizing building resilient cost structures and consolidating 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.