- 09 Aug 2024
- ICICI Securities
Greaves Cotton reported a decent set of Q1FY25 results
GREAVESCOT - 175 Change: -0.13 (-0.07 %)News: Greaves Cotton reported a decent set of Q1FY25 results. Consolidated revenues grew by 13% YoY at Rs 630 crore. The standalone or the base business revenues grew by 12% YoY at Rs 445 crore. On the EV front, EV revenues came in at Rs 127 crore in Q1FY25 vs. Rs 135 crore QoQ. On the positive side, 3W EV segment reported robust performance on the volume front. EV 2W volumes declined by 23% YoY at 12790 units whereas EV3W volumes stood at 3074 units, up 14% YoY. Standalone margins were flat YoY at 11.3% while consolidated margins came in at 4.3% in Q1FY25 vs. 3.5% in Q4FY24 despite a loss of Rs 39 crore in the EV segment.
Views: With base business turning around we believe the worst seems to be over for the company. Declining losses in the EV segment and requalification for the subsidy programme is heartening. Growth prospects and velocity of the same will now decide how fast the stock gets rerated.
Impact: Positive