Engineering company Greaves Cotton on Tuesday reported around 11 per cent decline in its consolidated profit at Rs 43.88 crore for the quarter ending September mainly on account of provisioning for doubtful debts.
The company had posted a profit of Rs 49.42 crore in the same quarter a year ago.
Greaves Cotton made a provision of Rs 9 crore on account of doubtful debts during the quarter.
The consolidated revenue from operations of the company increased by 3.5 per cent to Rs 512.42 crore during the reported quarter from Rs 495.08 crore it posted in the corresponding quarter of previous fiscal.
The current economic conditions continue to remain challenging. Despite current economic scenario, our new growth levers and diversified portfolio has helped in sustaining growth in first half (of 2019-20). We are cautiously optimistic of growth as and when the market conditions improve, Nagesh Basavanhalli, MD and CEO, Greaves Cotton said in a statement.
The board of directors of Greaves Cotton have also given an in-principle approval to acquire 18.77 per cent stake in one its subsidiary companies, Ampere Vehicles Private Limited, India, through secondary purchase for a total consideration not exceeding Rs 60 crore. This include commitment fees and non-compete fees not exceeding Rs 20 crore.
"Pursuant to the completion of the aforesaid acquisition, Ampere will become a wholly-owned subsidiary of the Company," Greaves Cotton said in a regulatory filing.
Shares of the company closed marginally higher at Rs 136.35 apiece at the BSE on Tuesday.
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