InvestorQ : What explains the sharp fall in the quarterly numbers of Greaves Cotton for the Mar-20 quarter?
Lavanya Subramanian made post

What explains the sharp fall in the quarterly numbers of Greaves Cotton for the Mar-20 quarter?

Answer
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ishika Banerjee answered.
3 months ago


Greaves Cotton, which manufactures diesel engines and gen-sets, reported a 32% fall in revenues for Mar-20 quarter at Rs.360 crore. The fourth quarter also impacted the full year revenues which fell by 8% to Rs.1821 crore. The net profits were lower by 12% at Rs.148 crore. The weak performance in the fourth quarter was clearly an outcome of the economic slowdown caused by the pandemic as well as the resultant lockdown across India. However, Greaves did work on its cost optimization during this period. The company still derives chunk of its revenues from supplying CNG, petrol and diesel engines for automotive and other applications and the auto sector has been under severe stress. However, the revenues from electric mobility vehicles have been growing and now contribute 10% of its total revenues. With the revenues from electric mobility doubling in tough quarter, it could be the growth area to look out for.