Greaves Cotton 11.3% net sales increase for Q1 2013
Despite severe economic constraints, Greaves Cotton Limited, one of India’s leading engineering companies has recorded a 6.8% increase in sales. Announcing their Q1 2013 results, the company has revealed that the period January to March 2013 has seen net sales to a total of INR 495.8 crores as compared to INR 445.4 crores in the same period of the previous year. Profits during the same period stood at INR 38.5 crores following which the company has declared final dividend of 25% or INR 0.50 on face value of Rs 2.
A major contributor to this increased sales and profits have been Greaves Automotive Engine Business a subsidiary of Greaves Cotton. The company has seen a product shift in four wheeled small commercial vehicles industries as they supply to Tata Motor’s Ace Zip and Magic Iris, besides to the three wheeler segment in the country. The company has also added Vibgyor Vehicles Limited to their line of customers and has a long term contract with Atul Auto to supply diesel engines for Atul’s three-wheelers such as Atul Smart, Atul Shakti and Atul Gem vehicles.
The company also has strong after market support infrastructure and a total of 1200 dealers across the country. The company produces a vast range of Automotive Engines besides single cylinder engines, producing a total of 4.5 lakh units annually. These diesel engines are supplied to a host of auto manufacturers including Piaggio, M&M, and Tata Motors among others.
Sunil Pahilajani, MD & CEO, said, “All our businesses are intrinsically woven with the growth of the key sectors of the Indian economy. In spite of the turbulent economic backdrop we have been able to deliver growth. As an organisation we remain performance driven and customer centric. We are confident that clear focus on our multi- dimensional growth strategy through expansion of product portfolio, expansion of markets and expansion of geographies will translate into sustainable and profitable growth. We as a Company have invested significant efforts and resources to streamline systems and processes, both internally and externally. This we believe will lead itself to efficient and continuous improvements in product development and customer delight which in turn will usher innovation and value creation.”