Q1 2025 Greaves Cotton Ltd Earnings Call Transcript
Key Points
- Greaves Cotton Ltd (BOM:501455) reported a 15% revenue growth in Q1 FY25 compared to the same period last year.
- The company introduced a range of environmentally friendly CPCB IV+ products, receiving positive responses from various sectors.
- Greaves Electric Mobility saw a significant increase in two-wheeler and three-wheeler volumes by 10% and 19% respectively.
- The company maintained a strong balance sheet with almost zero debt and standalone cash of INR550 crore.
- Greaves Cotton Ltd (BOM:501455) achieved an improved working capital cycle through better inventory management and efficiency improvements.
- Standalone revenue for Greaves Cotton Ltd (BOM:501455) saw a sequential decline, raising concerns about its performance consistency.
- The company has a relatively low market share in the non-auto segment, specifically less than 10% in the CPCB IV+ genset market.
- There were issues with the distribution network, particularly in larger cities like Mumbai, affecting customer experience.
- The EBITDA margin for the engine business was less than double digits in Q1 FY25, compared to previous quarters.
- Despite improvements, the Electric Mobility segment still reported an EBITDA loss, indicating ongoing challenges in achieving profitability.
Ladies and gentlemen, good day, and welcome to the Greaves Cotton's Q1 FY25 earnings conference call. We have with us today Mr. Nagesh Basavanhalli, Non-Executive Vice Chairman, GCL; Mr. Akhila Balachandar, CFO, GCL; Dr. Arup Basu, Managing Director, GCL; Mr. K. Vijaya Kumar, ED and CEO, GEMPL; Mr. Narasimha Jayakumar, CEO, Greaves Retail; Mr. Chandrasekar Thyagarajan, CFO, GEMPL; and Mr. Atindra Basu, Group General Counsel and Company Secretary of the company.
We would like to begin the call with brief opening remarks from the management, following which we will have the forum open for an interactive question-and-answer session. Before we start, I would like to point out that some statements made in today's call is may be forward-looking in nature, and a disclaimer to this effect has been included in the results presentation shared with you earlier. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Nagesh Basavanhalli. Thank you, and over to you, sir.
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