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New companies develop however fail to tug Greaves Cotton out of the crimson within the September quarter

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Mumbai: Engine maker Greaves Cotton noticed an uptick within the sale of its non-auto engines and electrical autos throughout the September quarter whilst its mainstay automotive engine enterprise declined sharply in tandem with declining gross sales of three-wheelers.

Non-auto engine gross sales grew by 27 per cent throughout the three-month interval to 12,200 models whereas electrical autos (EV) gross sales by its subsidiary Ampere grew by 15 per cent to 7,200 models.

“We focussed on diversification into non-auto small engines to make up for the loss in automotive engines,” mentioned Nagesh Basavanhalli, managing director of Greaves Cotton.

“Company reported a loss of Rs 18 crore during Sept quarter against a profit of Rs 45 crore a year ago, as revenue fell by 41% to Rs 288 crore.”

— Decline in Profit

The gross sales will increase in these segments, nevertheless, might hardly compensate for the decline within the firm’s core companies. Its automotive engine gross sales receded by 72 per cent to 19,200 models throughout the quarter as three-wheeler gross sales in India declined by 75 per cent. Genset and different non-auto tools gross sales declined by 42 per cent to 10,600 models.

The firm reported a lack of Rs 18 crore throughout the September quarter in opposition to a revenue of Rs 45 crore a yr in the past, as income fell by 41 per cent to Rs 288 crore.

The automotive phase contributed virtually half of the corporate’s income, whereas its after-market three-wheeler spares and repair enterprise contributed 1 / 4. The EV enterprise accounted for 13 per cent of the income within the September quarter. The EV subsidiary is but to achieve profitability, having reported a lack of Rs 21 crore on income of Rs 90 crore throughout FY20.

“This is such a sun-rise trade, so clearly we will probably be aiming for worthwhile development. But we may also be considering ensuring we develop the enterprise,” Basavanhalli mentioned on Ampere’s path to profitability. The firm was additionally open to inorganic acquisitions within the EV house, he mentioned.

Ampere bought about 900 electrical two-wheelers between April and September this yr, accounting for a market share of 12 per cent, in accordance with a report by trade physique Society of Manufacturers of Electric Vehicles.

On the non-auto small engines entrance, the corporate is in search of prospects in purposes like development, road-paving, sewage purposes, mini tractors, compactors, concrete lifts, et cetera. “From almost nothing, that is going to be a significant part of our business,” mentioned Basavanhalli.

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