Greaves Cotton zooms 11% as company’s E-Mobility biz turns profitable in Q4

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Shares of Soared 11 per cent to Rs 145.60 on the BSE in Friday’s trade after the company’s E-Mobility business turned profitable in March 2022 (Q4FY22).

At 01:52 pm, the stock traded 10 per cent higher at Rs 143.80 on the back of a two-fold jump in trading volume. In comparison, the was up 1.3 per cent at 53,640. A combined 4.1 million equity shares changed hands on the BSE and NSE.



However, despite today’s run-up, has underperformed the market by falling 28 per cent in the past one month, as against a 8 per cent decline in the benchmark index.

In Q4FY22, the company reported its highest-ever consolidated revenue of Rs 621 crore, up 19 per cent year-on-year (YoY) from Rs 520 crore in Q4FY21. Profit after tax (PAT) grew 22 per cent YoY at Rs 17 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margins contracted 140 bps at 6.6 per cent from 8.0 per cent in previous year quarter.

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The company reported standalone revenue of Rs 378.7 crore which declined by 17.1 per cent on a YoY basis. It reported standalone PAT of Rs 16.8 crore down by 29.6 per cent YoY basis.

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said the quarter reflected the strong contribution of new businesses in driving revenue growth with 49 per cent contribution in FY22. The YoY performance growth is attributable to the company’s accelerated expansion into the e-mobility business and reorganization of the 2W and 3W e-mobility businesses under Greaves Electric Mobility and higher revenue contribution from the auto engines business, the company said.

The retail sales of E-Mobility business stood at 62,000+ vehicles for FY 22, up 128 per cent from FY21 of 27,000+ vehicles. Affordable pricing along with credible technology stack, safety track record and on-ground after sales support has made Ampere 2W scooters an attractive EV option for the discerning buyers across the country, the company said.

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According to ICICI Securities, the key highlight of the result is stupendous revenue growth in the E- Mobility business coupled with first quarter of positive segmental profit. This signifies the company is making inroads in the EV arena and has the potential to become a formidable player going forward.

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