Greaves Cotton Limited

Akhila Balachandar

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Dr. Arup Basu

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Dr. Arup Basu

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Dr. Arup Basu

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Dr. Arup Basu

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Narasimha J.

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Narasimha J.

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K. Vijaya Kumar

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K. Vijaya Kumar

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Narasimha J.

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And as you are aware, we are also addressing one of the primary concern for EV which is the range anxiety.

— K. Vijaya Kumar

We recognize that for customers to wholeheartedly adopt EV, it is essential for them to have confidence in their ability to reach their destination without concern.

— K. Vijaya Kumar

And I think what we have done this time is to share the impact of this, we also put out the current revenue mix starting from 2016 and the journey till date, and you will see that this has been a really diversified revenue pool that we are now building out.

— Akhila Balachandar

And as long as our portfolio has everything that the industry needs, that's our way of risk mitigation as well as preparing for a growing future.

— K. Vijaya Kumar

And it's a commendable job considering that even in the weak demand scenario, you have managed to grow your EBITDA margins.

— Dr. Arup Basu

And I understand that there has been a slowdown in the genset side but I would like to know the status of this business for this quarter.

— Akhila Balachandar

Q

Thank you, Nagesh, and good morning, everyone. GREAVES I am delighted to share that we have delivered strong financial performance validating our strategic initiatives and positioning us for sustained growth. For the quarter, we achieved consolidated revenues of Rs. 751 crore with Greaves Cotton posting standalone growth of 13% at Rs. 502 crore. Excel reported revenues of Rs. 69 crore and Greaves Electric Mobility reported revenues of Rs. 184 crore. Both Engineering and Retail businesses continue their upward trajectory with Q3 revenue growing year-on-year by 14% and 13%, respectively. The Ele

Dr. Arup Basu

Thank you, Akhila. Good morning, ladies and gentlemen. I will speak about the Engineering business, which comprises Greaves Engines and Excel. I am pleased to report that in Q3 FY25 on a year-on-year basis, Greaves Engineering delivered a double-digit growth in revenue. In today's commentary, I would like to add some more color in terms of internal factors that have resulted in this profitable growth. The results reflect our progress 3 | Greaves Cotton Limited (www.greavescotton.com) GREAVES on diversification of revenues and profits across automotive and non-automotive applications. As I have

Q

The first question is from the line of Zaki Nasir, an individual investor. Good morning and congratulations to the management on a very healthy set of numbers. I am very happy to note that the board has again reiterated its target of Rs. 15,000 crore for 2030, sir. As what I roughly calculated, that would require a high 20s or even a 30% growth rate from here. So broadly, how do you expect to go forward on this path, whether with organic or a combination of organic and inorganic? That is my question number one. Secondly, in the current expo, I see some very interesting products launched by Gre

Zaki Nasir

And what about the first question, sir, about the growth? And a small addendum for Ms. Akhila, what is the cash balance on the balance sheet now and how do you see this going forward after the issue and stuff like that? Thanks for this question, Mr. Zaki. Let me take your last question first. As on the end of December quarter, the cash on our books at a consolidated level is around Rs. 500 plus crore, just shade marginally above Rs. 500 crore. In response to your question about how we believe we will achieve this ambitious target that we have set out for ourselves, so let me take a step back a

Q

My question is on the engine side first. So, our auto engine division is now shifting from, let's say, diesel engines to CNG or petrol or more of fuel agnostic engines. So, what is our strategy of increasing our presence or market share in, let's say, a market like CNG engine where Bajaj Auto dominates the market. What is our strategy to stand against our competition because our market share currently is very minuscule? So, I just wanted to get an idea of our plans in place with respect to this. So, perhaps I can quickly respond to that. As you rightly said, we are fuel agnostic, and we make t

Dr. Arup Basu

cities for B2B purposes, which we have demonstrated. These are under study, and it will be developed as per our NPD plan going forward. Thank you for your answer, but my question was more of the newly launched production or engineering side of business. So, the Biofuel engine or let's say, the ‘hydrogen-powered’ engine or the ‘Euro 5 Plus’ diesel engine. These are the three products that we launched in the expo. My question was regarding those products. Right. The hydrogen engine was a concept engine. The others are further developed in terms of availability. The hydrogen engine can also be ma

Q

Congratulations to the management for putting a healthy set of numbers. First of all, I would just like to understand there was a reference made to aerospace segment or industry in the opening remarks. If you can just expand upon that a little bit qualitatively or some more inputs that can be given. 9 | Greaves Cotton Limited (www.greavescotton.com) GREAVES

Narasimha J.

Yes, sure, maybe I'll just elaborate on that. We do a lot of machining and engineering fundamentally, and one of the areas which require a long lead time to prepare ourselves is the area of aerospace, which is growing in India quite a bit. So, from precision manufacturing and a precision engineering capability, this is one of the wave three horizon opportunities that we see. And we thought it's better to prepare for it early on. And one of the first steps in that is to qualify your plant for these kinds of products because there is a very long lead time to qualify yourselves because it's a ver

Q

My first question relates to the Excel Controlinkage. So, what I want to understand is, what are the growth constraints that we are facing since last two quarters in this business? Because the revenue growth seems to be declining over a year. Is this a conscious decision or it's because the industry is going down?

Dr. Arup Basu

Right. So, over the first couple of quarters, Excel Controlinkage products go largely to the OEM industry and a little portion goes to the aftermarket. So, the OEM industry in India as you are aware in the first couple of quarters had been reasonably flat or a bit tepid, typically particularly the commercial vehicles as well as the agri- vehicles like tractors etc. So, those were some of the industries that were kind of flattish and the commercial vehicles industry even had a small contraction. We see that being a temporary phenomenon because of elections, floods, etc., all those reasons. But

Q

Part of my questions have been answered previously. Just a follow-up on one of the previously asked questions on capex in Excel Controlinkage. Is it going to be in Greenfield or Brownfield? And what sort of cash outflow can we expect there? And are there any timelines which you are currently working on that?

Akhila Balachandar

Sure, let me take that. We have a very strong robust capex program both across Greaves Cotton and Excel. The number of initiatives which we keep doing, which we call internally sustenance, like Dr. Arup mentioned earlier, any assembly line or manufacturing line, while there may not be an overall capacity constraint, there are also ongoing projects on de-bottlenecking, which ensure that we are able to run our capacity and our capex far more efficiently. So, these are multiple projects which we have evaluated and are currently in place across all our organizations. Then there are some larger ini

Q

I just had one question with respect to your two-wheeler electric business. I think in September, we got back onto the government subsidy program. We were anticipating then, I mean, obviously it takes a little bit of time for the subsidy to get into retail. We were anticipating a little bit better improvement in your month-on- month two-wheeler sales numbers. In fact, we have seen on a quarterly basis, we have seen a little bit of an improvement, but things are still sort of fairly subdued on that count. Is there any sort of constraint there in terms of ramping up the two- wheeler sales, given

K. Vijaya Kumar

Thank you so much for the question. So, from a constraint point of view, I don't think there is any specific constraint. So, what has happened was October was a bumper month. And as you all know, post November end and December, the industry itself was close to 30% down. The industry in the month of December had gone down to 13 | Greaves Cotton Limited (www.greavescotton.com) GREAVES 73,323 from 1,18,000 in the month of November. So, that is the sort of steep fall it had taken. So. that's point number one. Point number two was we were transitioning into the new Magnus Neo, which means we have i

Q

Congratulations on the great set of numbers. My question is on the generator side, how was the performance in Q3 FY25 from this business? And I understand that there has been a slowdown in the genset side but I would like to know the status of this business for this quarter. So, Atul, maybe I will respond to your question. There has been a significant change in the regulatory norms that happened in this financial year which was the CPCB IV. This is for the India geography, and a significant range of gensets had to be upgraded by all players towards that. And what has happened is overall the ge

Management