Greaves Cotton Q4 Results Review - E-Mobility Business Continues Growth Momentum: ICICI Direct

ICICI Direct Report

Greaves Cotton Ltd. reported a strong set of Q4 FY23 numbers.

Standalone revenue came in at Rs 436.8 crore (versus our estimate of Rs 411.2 crore), up 15.3% YoY.

Greaves Cotton's standalone Ebitda was at Rs 51.8 crore (versus our estimate of Rs 44.8 crore) and Rs 29.1 crore in Q4 FY22. On a consolidated basis, Ebitda came in at Rs 49 crore (versus Ebitda of Rs 41 crore in Q4 FY22).

Consequently, standalone adjusted profit after tax was at Rs 29.5 crore (versus our estimate of Rs 29.4 crore) up 75.1% YoY.

Engine (auto, non-auto) volumes grew 32% YoY to 33,726 units.

Key triggers for future price performance:

• Transformation strategy to increase e-mobility and new-initiatives business share to drive long term growth and help transform and de-risk its business.

• Consolidation of manufacturing operations into Megasites to bring higher operational efficiencies and reduced fixed costs in the long run.

• We expect revenue, Ebitda to grow at a compound annual growth rate of ~8.9%, 14.9%, respectively, in FY23E-25E.

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