Greaves Cotton (501455) Q2 23/24 earnings summary

Executive summary

• Q2 FY24 consolidated revenue was ₹726.69 crore, up 4% YoY; a ₹380.50 crore exceptional expense, mainly related to FAME, contributed to a ₹374.59 crore net loss.

• Standalone Q2 revenue was ₹458.58 crore, up 23% YoY; EBITDA rose 91% to ₹64 crore with a 13.9% margin, and PAT was ₹123.40 crore.

• Diversification across engineering, electric mobility, retail, finance and technology was described as supporting revenue resilience.

Financial highlights

• Consolidated Q2 EBITDA was ₹46 crore, up 7% YoY, with a 6.3% margin; operating PBT was ₹40 crore, down 4% YoY.

• Consolidated Q2 loss before tax was ₹340.52 crore after exceptional items, versus profit of ₹40.33 crore a year earlier; H1 loss before tax was ₹350.93 crore.

• H1 consolidated revenue was ₹1,295.28 crore, down 5% YoY; EBITDA was ₹32 crore, down 60%, and operating PBT was ₹30 crore, down 58%.

• Standalone Q2 PBT before exceptional items was ₹61.90 crore; including ₹91.82 crore exceptional income, PBT was ₹153.72 crore.

• H1 standalone revenue was ₹854.53 crore, up 14% YoY; EBITDA was ₹108 crore, up 78%, operating PBT ₹106 crore, up 80%, and PAT ₹157.19 crore.

Segment performance

• Engines Q2 operating revenue was ₹313 crore and EBITDA ₹33 crore, with a 10.5% margin; auto engine volumes rose 54% YoY to 24,968 units and non-auto volumes rose 17% to 11,199.

• Statutory Q2 segment revenue was ₹414.23 crore for Engines, ₹200.29 crore for Electric Mobility, ₹67.74 crore for Cables & Control Levers and ₹44.43 crore for Others.

• Retail Q2 revenue was ₹146 crore, up 9% YoY and 5% QoQ; EBITDA was ₹31 crore, with a 20.9% margin.

• Excel Q2 revenue was ₹68 crore and EBITDA ₹22 crore, with a 33.0% margin; combined standalone and Excel revenue was ₹527 crore and EBITDA ₹86 crore.

• Electric mobility revenue was ₹207 crore and EBITDA loss ₹37 crore; E2W volumes fell 49% YoY to 15,616, while E3W volumes rose 127% to 4,706.