Greaves Cotton plunges 3% after Q1 nos; Nagesh Basavanhalli steps down as CEO

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Greaves Cotton shares fell 3.3% to an intraday low of Rs 84.5 on BSE in an otherwise strong market on Friday after the company reported a net loss of Rs 30, 86 crore for the June quarter of FY21, compared to profit of Rs 34.5 crore in the period a year ago.

Its consolidated turnover fell 68% year-on-year to Rs 158.3 crore in the quarter under review from Rs. 499.56 crore in Q1FY20. In addition, he reported EBIDTA loss of Rs 26.70 crore in Q1FY21 compared to EBITDA profit of Rs 58.31 crore in Q1FY20.

“The impact on corporate revenues during this quarter was due to an unprecedented impact caused by Covid-19 and it cannot be compared to the corresponding quarter of last year as business scenarios have changed dramatically in the -beyond expectations during and after Covid … Although it has been one of the difficult quarters, not just for us for the industry, we thank our OEMs, end customers, supply chain partners and our employees who have supported us in these difficult times. By pursuing innovation and remaining invested in projects of strategic importance, we have continued to build the Our new growth levers have continued to contribute 23% over the course of this quarter, underlining that we are moving in the right strategic direction, ”the company said in a statement.

The company said the Covid-19 pandemic continued to have a significant impact on business in the first quarter of fiscal 21. However, with the change in proactive approach and effective cost management, it has ensured business continuity in these difficult times and captivated stakeholders.

Today, Greaves is spearheading the adoption of electric vehicles in the country by creating one of the fastest growing electric vehicle (EV) product portfolios under Ampere Electric and expanding its footprint across the country even during the post-Covid period … Additionally, the company is committed to accelerating and supporting the country’s transition by building a strong ecosystem of electric vehicles across the country. with more than 500 Greaves Retail contact points, the company has become one of the largest one-stop shops and mobility enabler for last mile vehicles. has strengthened financing activities with Greaves Finance ”, he said .

In addition, the company’s board of directors has approved the resignation of Nagesh Basavanhalli as chief executive officer and CEO and appointed him vice chairman (non-executive) with immediate effect. READ HERE

Greaves Cotton Limited is a diversified engineering company and a leading manufacturer of Cleantech transmission solutions (CNG, gasoline and diesel engines), generator sets, agricultural equipment, electric mobility, spare parts and Services.

At 11:06 am, the stock was quoting Rs 84.85 per share, down about 3%, against a 0.23% increase in the benchmark S&P BSE Sensex.

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