Greaves Cotton Limited declares their Q4 results

For the fourth quarter of 2011-12, Greaves Cotton Limited earned a net profit of Rs.78 crores, up 66% as compared to the same period in 2010-11. Net sales however were down 2% and stood at Rs.445 crores as compared to Rs.454 crores in the same period in the previous year. EBIDTA margin for this quarter also stood at 13.5% as compared to 14.5% in the fourth quarter of the previous financial year. A 10% dividend or Rs.0.20 on face value of Rs.2 was announced. For the entire year the company registered Net Sales of Rs.1753 crores as compared to Rs.1600 crores in the period a year ago resulting in a rise of 9.6%

The company got additional income of Rs.43 crores during Q4 from profit from sales incurred from land and building. The company has played a major role in the Indian economy and hopes to continue in this vein during the coming year as well. Greaves Cotton will concentrate on their R&D facilities and product development. The company is driven by performance and is confident of their endeavors in improving their products besides concentrating on innovations in the market.

From April 27, 2012 technologically superior products were introduced in the Indian market. The company’s Construction Equipment Division is one of the country’s leading engineering companies. This division has a tie up with Samil, Korea for technology transfer which is being introduced in the Indian market.

News Release: Greaves Cotton Limited, one of India’s leading engineering companies reported a rise of 66% in Net Profit at Rs. 78 Crore in the quarter ended March 31, 2012 as against Rs. 47 Crore, in the same period of last fiscal. Net Sales for the period stood Rs. 445 Crore as against Rs. 454 Crore for the corresponding period last year.

The Company declared a final dividend of 10% or, Rs.0.20 on a face value Rs. 2/-. Following this full and final dividend the total dividend for the fiscal including interim dividend stood at 110% or, Rs. 2.20, on a face value of Rs.2/-.

The EBIDTA margin for the quarter stood at 13.5% as against 14.5 % reported in Q4FY11.

For the full year, the company registered Net Sales of Rs. 1753 Crore as against Rs. 1600 Crore during the year-ago period a rise of 9.6%. Net profit for the year was at Rs. 185 Crore as against Rs. 155 Crore, an increase of 19.4 %. The company reported EPS of Rs. 7.60 as against Rs. 6.35 in the same period of last fiscal.

The Company had an advantage of exceptional income of Rs.43 Crore during Q4 and FY 2011-12. This comprised of profit from sale of land and building Rs.77 Crore and provisions for obsolescence of inventory and diminution in value of investment, Rs. 20 Crore and Rs.14 Crore respectively. The normalized PAT (without exceptional item) for Q4 and FY 2011-12 stood at Rs.37 Crore and Rs.144 Crore respectively.

Engineering and partnering India’s growth story with strategic businesses in key sectors of the Indian economy, Greaves Cotton Limited endevours to leverage its strengths in R&D and product development to widen product range across businesses. Backed by strong manufacturing capabilities and well penetrated distribution network, the Company is seeking a customer centric approach by providing best-in-class quality and service levels to customers.

Commenting on the company’s performance during the year, Mr. Sunil Pahilajani, MD & CEO, said: “The business environment has been dynamic and has been constantly evolving. We as a Company have invested significant efforts and resources to streamline systems and processes in order to help deliver efficient results. We believe that this will help translate into sustainable and profitable growth for the organization. We remain performance driven and are confident that our focus on continued improvements in products and speed of response to the market will lend itself to innovation and value creation .”