Greaves Cotton dips 3% post Q1 nos; Nagesh Basavanhalli steps down as CEO

Shares of Greaves Cotton declined 3.3 per cent to hit an intra-day low of Rs 84.5 on the BSE, in an otherwise strong market, on Friday after the company reported net loss of Rs 30.86 crore for June quarter of FY21, as against profit of Rs 34.5 crore in the year-ago period.

It's consolidated revenue tumbled 68 per cent YoY to Rs 158.3 crore during the quarter under review as against Rs. 499.56 crore in Q1FY20. Besides, it reported an EBIDTA loss of Rs 26.70 crore in Q1FY21 as against EBITDA profit of Rs 58.31 crore in Q1FY20. 

"The impact on revenue across businesses in this quarter was due to unprecedented impact caused by Covid-19 and it cannot be compared with the corresponding quarter last year as business scenarios have drastically changed beyond expectation during and post-Covid... 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 per cent in this quarter emphasizing that we are moving in the right strategic direction," the company said in a statement.

The company said that Covid-19 pandemic continued to significantly impact the business in Q1FY21. However, with the proactive shift in approach and managing cost efficiently, it ensured business continuity in these difficult times and kept the stakeholders engrossed.

"Today, Greaves is spearheading the electric vehicle adoption in the country by building one of the fastest-growing electric vehicle (EV) product portfolios under Ampere Electric and expanding its footprint across the country even during post-Covid... 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," it said.

Besides, the Board of the company approved the resignation of Nagesh Basavanhalli as Managing Director and CEO and appointed him as the Vice Chairman (Non-Executive) with immediate effect.  READ HERE

Greaves Cotton Limited is a diversified engineering company and a leading manufacturer of Cleantech Powertrain Solutions (CNG, Petrol and Diesel Engines), Generator sets, Farm equipment, E-Mobility, Aftermarket spares and services

At 11:06 am, the stock was quoting at Rs 84.85 per share, down around 3 per cent, as against 0.23 per cent rise in the benchmark S&P BSE Sensex.