Greaves Cotton shares plunge 14% after Q2 show disappoints investors

Shares of Greaves Cotton plunged up to 13.66 per cent at Rs 154.50 per share on the BSE in Wednesday’s intraday deals after the company reported weak quarterly earnings for the second quarter of financial year 2024-25 (Q2FY25).

 

Greaves Cotton on Tuesday reported a net loss of Rs 14 crore in Q2FY25 versus a net loss of Rs 375 crore in the year ago period. The company’s revenue from operations for the quarter stood at Rs 705 crore, reflecting an 3 per cent decrease from Rs 727 crore in the previous year.  

 

Greaves Cotton’s earnings before interest, tax, depreciation, and amortisation (Ebitda) came in at Rs 22 crore, down 52.17 per cent versus Rs 14 crore in the same quarter last year. Ebitda margin slumped 320 basis points year-on-year (Y-o-Y) in Q2FY25 to 3.12 per cent versus 6.32 per cent in Q2FY24.

 

 

Greaves Cotton Limited is an energy solutions company specialising in products for sustainable mobility. The company manufactures engines for CNG, petrol, and diesel, along with generator sets, farm equipment, and electric vehicles. 

 

It also offers aftermarket spares and services. Operating across four key segments—Engines, Electric Mobility, Cables and Control Levers, and Others—Greaves Cotton focuses on delivering innovative solutions for diverse mobility and energy needs.

 

Greaves Cotton share price history

The company’s stock has underperformed the market year to date as it has risen 2.5 per cent, while gaining 24 per cent in the last one year. In comparison BSE Sensex has risen 8.6 per cent year to date and 20.8 per cent in a year. 

 

The company has a total market capitalisation of Rs 3,724.36 crore. Greaves Cotton shares are trading at a price to earnings multiple of 20.57 times and at an earning per share of Rs 8.70. 

 

At 1:18 PM; the shares of the company were trading 10.62 per cent higher at Rs 159.95 a piece. By comparison, the BSE Sensex was down 0.84 per cent at 78,015.07 level.