Q3 Result … As per expected lines… Dividend 4/= per share
Base revenue is increasing in value terms. No new business has started to generate meaningful revenue. Material cost slightly increased. Written off Rs. 5 cr of ILFS investment.
Q3 19.pdf (2.0 MB)
They have just announced standalone results. Ampere numbers wouldn’t be part of these numbers I would assume.
Also they have 20 Crores of ILFS paper, for which they have taken 5 Crores provision. Not a big number in the overall scheme of things. But this ILFS fiasco is impacting so many companies.
Hello,
Where can I get this data.
Thanks
For any insider trading information, you can refer the following link in BSE site
https://www.bseindia.com/corporates/Insider_Trading_new.aspx#
The new management seems to be entrepreneurial and is taking good initiatives to lift up this otherwise stagnated / matured / unambitious company.
The current growth is coming via fresh revenues from Greaves Care venture.
However, the growth driven by this segment wouldn’t sustain long once they penetrate urban cities.
I believe they have opened 250 such outlets till Q3FY19.
Apparently, there are such 20000 mom-and-pop shops without any brand backing. So 250 sounds like a small number and this should grow crazily over the next few years too, as it is operated in franchise mode.
Sounds like Thyrocare of servicing?
The company has acquired Ampere Electric Vehicles and also mentions that their technology is ready for the three wheeler segment as well. I’d guess some knowledge transfer was involved in the acquisition 
They are expecting revenues of 30-40 crores from Ampere this year and are looking to expand this to 100 crores over the next few years.
From what I understand, the management is ready with an electric product for 3W market and will deliver to the market once it is ready for electric 3W.
I need to look up the numbers of 3W industry for further understanding / confidence.
Don’t see much scope for growth in the Gensets business due to the improving economics of renewable energy sources. Would be surprised / alarmed / disappointed if management invests their energy into this. Good to see no announcements are being made in this regard.
In the agri space, they have launched something called ‘Bahubali’. I believe this received good response as their power tiller sales grew 83% YTD FY19 as per their latest presentation.
Can see few videos on YouTube praising Greaves Bahubali product (though very few).
I’m having almost 0 knowledge in Agri space. Would need someone’s help in researching this space. I put a video in the bottom. Please comment if it is really interesting / innovative or is a mainstream product.
CFO projects to invest 200 crores in 2019, 2020.
If you sum up the PP&E invested (from cashflow statement) over the past five years i.e. FY13-18, it adds up to around 200 crores. So this is some serious money being invested, compared to the company’s past. If they maintain the current ROCE, then the growth would be very exciting!
Also, don’t think this will come at the cost of dividends as I see they have good amount of liquid financial investments in current assets section over the past few years.
Additional sources other than those put up above in the thread:
Disclosures: I just started looking this up recently and learnt the definition of terms like powertrains just yesterday. So please consider me a novice. Think this is interesting enough for me to dig further. Will post my further findings. No positions. Not a recommendation. Not a SEBI registered analyst.
E-scooters launched
Q4 results declared. Revenue from operations grown Q on Q. But profit declined by 20% compared to year ago quarter.
Detailed results.
Buyback announced for 5.6% of outstanding shares @175/- per share (today’s close at NSE at 149.25) via tender route with a buyback size of 240 crores. The promoter share holding stands at 51.9% as per latest published shareholding pattern annexed to buyback notification below.
Press release
Greaves accelerates the growth momentum for 8th Quarter in a row –FY19growth at 11% ~Ramps up new business initiatives with 300+ Greaves Retail outlets
11% growth in Revenue for FY19 at Rs. 1988 crore as against Rs. 1792 crore in FY18. EBIDTA for the year grew by 8% at RS. 275 crore in FY19 as against Rs. 255 crore in FY18.PBT before exceptional items grew by 7% at Rs. 264 crore in FY19 as against Rs. 247 crore in FY18.Profit After Tax has shown a drop of Rs. 34 crore in FY19 mainly due to higher exceptional income in the previous year of Rs. 48 crore against exceptional lossof Rs. 18 crore in FY19. Current year exceptional loss includes provision on account of IL&FS ( Rs. 15.5 crore)
more details
Q4 Results presentation :
Making moves in EV
Has any one compared the EV scooters from GC and Ather Energy? A quick glance on the website shows scooters from Ather are much more expensive (starting at 1.2L) but not sure about the design and utility aspects.
Any thoughts on if EV is game changer for GC? Though cash rich, the company has not been able to growth the top line in the recent past. Can this the trigger?
Why is the stock down on acquisition of Ampere and holding raised to 72‰, is it perceived as a risk. If so, why? Isn’t diversification(from Diesel to EV ) considered good specially when the budget has given a fillip to the investment and purchase of EVs…?
when does the buyback begin ?
Last Date to buy to participate in Buyback was yesterday, that is to have the share in your Demat account on T+2 basis. So today share price corrected.
The dates to tender our shares yet to be announced. Keep tracking.
AR Link of Greaves Cotton https://www.bseindia.com/xml-data/corpfiling/AttachLive/b0567953-d9f2-453c-8c9b-2c95fbcd2a4c.pdf
Some Management discussion points
Financial Performance In FY 2018-19, there was exceptional expense of 17.9 Crore against the exception income of 47.5 Crore in FY 2017-18. FY 2018-19 exceptional expense was for provision made towards losses which may be suffered on account of a fixed deposit of ` 20.50 Crore placed in IL&FS.
Greaves Cotton Limited is a diversified engineering company with over 160 years of strong presence. The company manufactures world-class products and solutions under various business units - Engines, Power, Farm, Aftermarket, Care and Global, backed by comprehensive support from 325+ big 3S (Sales, Service and Spares) retail centres and 5,000+ smaller spare parts retail outlets.In the mobility segment, the Company provides affordable mobility solutions manufacturing 4 lakh plus engines annually, almost 1 engine per minute. This translates to moving over 1 Crore passengers and 5 lakh tonnes of cargo daily. In all, the Company has crossed 5 million engines, 3 million pumpsets and 1 million gensets. Greaves Cotton augmented its Clean Technology portfolio with entry in the last-mile affordable 2W personal Mobility segment with Ampere Electric Vehicles and e-rickshaws in last-mile people transportation segment.
Outlook for E-Mobility The outlook in the affordable mobility is exciting as the Company is witnessing demand in the lower speed as well as the optimal speed of the higher speed EV versions. The Company believes that the market size for affordable mobility is large at the bottom of the pyramid and more than 200 million households can benefit with these vehicles.
Outlook of AUXILIARY POWER BUSINESS: With robust economic growth and development, strong growth in the private sector capex cycle and higher budgetary allocations to infrastructure, the genset industry is poised for a good growth
Outlook on FARM EQUIPMENT BUSINESS : The Government’s continued thrust in the agricultural areas, higher MSP for certain crops and reforms to ensure farmers get a better price hold promise for the Company. Mechanisation is also aided by the higher labour prices and unavailability of labour during particular season. The Company is looking to expand product range based on the feedback received from farming communities. The Company is also working on digital revolution to increase productivity by providing timely information about rainfall and price quoted in various mandis and outlook
Outlook AfterMaket Business: Leveraging its strong brand name assiduously built over the decades, the Company hopes to become a dominant player in the After sales and service market.
Greaves Retail By building Greaves Retail, the Company is well poised to support customer with EV charging infrastructure and thus accelerate India’s mission of growing Electric Vehicles as a clean last-mile solution.
International Business : India with its competitive advantages is likely to witness healthy growth in engineering exports in FY 2019-20. Despite the much-feared tariff wars, the global recovery is expected to stay on course. The Company is well-placed to explore the emerging opportunities in the export market.
HR The payroll count of Company’s permanent employees was 1,675 on March 31, 2019.
Dividend: The Company paid an interim dividend of 4 per share on face value of 2 each in compliance with the Dividend Distribution Policy. The Board has not recommended any final dividend for the Financial Year 2018-19. Thus, the interim dividend of ` 4 paid during the financial year shall be considered as final dividend.
Subsidiaries:
Top 10 share holders(with the exception of LIC, GIC and OIC -all GOI) and Promoters bought shares during last FY. Interestingly one of the top 10 share holder is “Massachusetts Institute of Technology”. Do they hold any other shares in India ? If any one can throw more light it will be great. As a result holding on non-institutions came down by 4.86 %. (-2.80% up to 1 Lakh). So here retail did not hold on to shares. After Buy back promoter holding will increase further.
Disc: Invested
Thank you. That still does not explain the reason behind a leading US academic institute to hold shares of Indian companies. Would appreciate if some one can eexplain.
US Universities Endowment do invest in Indian Equities. In the past, MIT had invested in BSE.
What is view should one tender shares in buyback or not ?
Results - 4% of revenue growth, Profit 4% down compared to year ago quarter.
Press release: https://www.bseindia.com/xml-data/corpfiling/AttachLive/3ff68524-7e6a-422e-bbca-fb60961b757d.pdf
Results: https://www.bseindia.com/xml-data/corpfiling/AttachLive/7a29b5fe-3626-4a4e-a54f-bf61a67a940a.pdf.
Anyone who attended conference call, please update the notes, especially on buyback status.
