Q2 2025 Greaves Cotton Ltd Earnings Call Transcript
Key Points
- Greaves Cotton Ltd (BOM:501455) reported consolidated revenue of INR705 crores for the quarter, demonstrating healthy financial results.
- The electric mobility division showed impressive growth, generating INR175 crores in Q2 and INR302 crores in H1, supported by new product launches.
- The company maintained a strong return on capital of approximately 16%-plus, with a nearly zero debt balance sheet and standalone cash reserves of INR350 crores.
- Greaves Retail expanded its network to over 250 distributors, 10,000-plus retailers, and 25,000 mechanics, enhancing its market presence.
- The engineering business, including Greaves engines and Excel, experienced strong volume growth in diesel three-wheelers and maintained industry-leading profitability.
- The genset segment experienced subdued performance due to the implementation of CPCB-4+ norms, making diesel gensets more expensive.
- Sectoral demand growth in the engineering business was muted due to a slowdown in infrastructure project execution and reduced mining activity.
- The company faces challenges in maintaining EBITDA margins, with investments in technology and resources impacting short-term profitability.
- Greaves Electric Mobility's market share has decreased, with a need to regain momentum in the competitive electric vehicle market.
- The company is still in the process of optimizing its cost structure and achieving a defined path to profitability in the electric mobility segment.
Ladies and gentlemen, good day, and welcome to the Greaves Cotton's Q2 and H1 FY25 Earnings Conference Call. We have with us today, Mr. Nagesh Basavanhalli, Non-executive Vice Chairman, GCL; Ms. Akhila Balachandar, CFO, GCL; Dr. Arup Basu, Managing Director, TCR; Mr. K. Rajakumar, ED and CEO, GE MBS; Mr. Narasimha Jayakumar, CEO, Greaves Retail; Mr. Chandrasekar Thyagarajan, CFO, GEMPL; 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 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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