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Key Management Representatives • Nagesh Basavanhalli (Non-Executive Vice Chairman) • Akhila Balachandar (CFO) • Arup Basu (Managing Director)
Financial Performance • Consolidated Revenue: Rs. 640 crores for Q1 • Standalone Revenue Growth: 12% • Electric Mobility Segment Revenue: Rs. 127 crores • Consolidated EBITDA: Rs. 27 crores • Debt and Cash Position: Minimal debt, Rs. 550 crores in cash
Business Highlights • Engineering Segment Growth: 15% revenue increase • Greaves Retail Growth: 7% revenue increase • Electric Mobility: • 10% increase in two-wheeler volumes • 19% increase in three-wheeler volumes • Launch of Ampere Nexus scooter
Strategic Initiatives • Focus on digital initiatives for customer engagement • Expansion into electric vehicle parts and Greaves Care outlets • Plans to enhance dealer network and financing partnerships
Q&A Session Insights • Profitability Concerns: Ongoing efforts to improve margins; commitment to 30% margin target • Distribution Network: 95% reduction in consumer complaints due to improvements • Excel Segment: Essential for vehicle control systems; growth potential acknowledged • EV Sector Confidence: Strong long-term prospects emphasized • Non-Auto Segment Growth: Increasing use cases in infrastructure and exports
Market Dynamics • CPCB-IV Regulations: Price changes dynamic; market share below 10% with growth potential • Demerger Considerations: Exploring options in e-mobility, no concrete plans yet • Cost Optimization: Contributed to reduced EBITDA loss in electric mobility
Future Focus • Three-Wheeler Segment: Higher margins; potential shift in focus acknowledged • Subsidy Participation: Eligibility confirmed for EMPS scheme and FAME III subsidy for two-wheelers • Diverse Revenue Streams: Shift to fuel-agnostic strategy including diesel, CNG, and electric options
Conclusion • Commitment to profitable growth through cost management and revenue enhancement; appreciation for participant engagement.
Greaves Cotton Limited Quarterly Earnings Call Summary
Date and Submission • Date of Call: May 9, 2024 • Submission: Transcript submitted to BSE and NSE on May 15, 2024
Key Management Insights • Nagesh Basavanhalli (Non-Executive Vice Chairman): • Shift from diesel engines to diversified, customer-centric approach. • Acquisition of Excel Controlinkage contributed to growth.
• Akhila Balachandar (CFO): • Revenue increased by 15% YoY to Rs. 1,779 crores. • Excel generated Rs. 263 crores in revenue, a 41% growth. • EBITDA rose 53% to Rs. 232 crores. • Proposed final dividend of 100%.
• Dr. Arup Basu: • Engineering segment revenue grew by 17%. • Focus on greener, fuel-agnostic products and increased exports (12.5% of total revenue).
Greaves Retail Performance • Narasimha Jayakumar (CEO, Greaves Retail): • Q4 revenue growth of 27% to Rs. 162 crores; full-year revenue up 10% to Rs. 588 crores. • Margin improvement of nearly 120 basis points. • Expansion in spare parts distribution and electric vehicle components.
Greaves Electric Mobility Updates • K. Vijaya Kumar (CEO, Greaves Electric Mobility): • Sold 11,527 two- and three-wheelers in Q4; total of 61,000 units for the year. • Launched new product, Nexus, with positive feedback. • Electric three-wheeler, ELTRA, gaining market traction.
Q&A Session Highlights • Concerns about margin reductions attributed to cyclical impacts and product mix. • Discussion on the shift in three-wheeler market towards diesel, CNG, and electric vehicles. • Addressed sales performance decline from 290,000 units in FY20 to 136,000 in FY24. • Clarified that the Nexus EV does not include subsidies but could see a price reduction with potential subsidies.
Strategic Focus and Future Outlook • Emphasis on expanding into last mile mobility with electric two- and three-wheelers. • Plans to increase market share through diverse product offerings. • Commitment to improving investor relations and addressing stagnant share price.
Engineering and Retail Expansion • Transitioning to mechatronics and electronics in engineering. • Greaves Retail diversifying into fuel-agnostic solutions. • Record profit before tax of Rs. 366 crores, highlighting commitment to multifaceted revenue streams.
Conclusion • Greaves Cotton Limited is positioned for continued growth and market expansion in the evolving mobility landscape, focusing on diversification and innovation.
Earnings Call Overview • Date: February 8, 2024 • Transcript submitted to BSE and NSE on February 14, 2024 • Key executives discussed performance and strategic initiatives
Company Performance Highlights • Nagesh Basavanhalli (Non-Executive Vice Chairman) • Emphasized diverse portfolio and growth strategies • Focus on collaborations and market expansion
• Dr. Arup Basu (Managing Director) • Progress in fuel-agnostic engine development • Increased export revenues; Greaves Engineering operating profit margin at 15.5%
• Sanjay Behl (CEO) • Significant growth in electric mobility, especially in 3-wheelers • Upcoming launch of NXG Scooter with positive feedback
Financial Performance • Greaves Retail (Narasimha Jayakumar, CEO) • Q3 revenue: Rs. 141 crores, EBITDA margin: 21.4% • First nine months revenue: Rs. 425 crores, 8% YoY growth
• Consolidated Revenue (Akhila Balachandar) • Q3 revenue: Rs. 665 crores, 30% YoY increase • Standalone revenue: Rs. 443 crores, 21% increase • EBITDA growth: 73% YoY, margins at 15.2% • Strong balance sheet with low debt and over Rs. 600 crores in cash
Strategic Focus • Transition to a fuel-agnostic aftermarket player • Expansion in EV sector and digital initiatives (e.g., Greaves Care app) • Retail network growth: ~9,300 retailers and 21,000 mechanics
Capital Expenditure (CAPEX) Plans • Planned investment: Rs. 100 crores for Greaves Cotton and Rs. 100 crores for Greaves Electric Mobility • Focus on product development rather than capacity expansion
Electric Mobility Developments • Launch of NXG high-speed scooter and electric 3-wheelers • 7% market share in electric scooters • Emphasis on cost-effective marketing and evaluating future spending
Market Challenges • Acknowledgment of plateauing growth in 2-wheeler and 3-wheeler segments • Need for restored subsidies and improved market share for E-mobility • Current EBITDA losses in E-mobility business
Additional Insights • FAME Subsidy Status: Ampere scooter recertified, awaiting approvals • Power Generator Business: Diverse product range, high capacity utilization, positive order outlook • Ecosystem Development: Transition to diversified revenue streams and capabilities in mechatronics and software
Conclusion • Management expressed optimism about future growth and appreciation for participant engagement.
Earnings Call Overview • Date: November 8, 2023 • Transcript submitted on: November 15, 2023 • Key Management Participants: • Nagesh Basavanahalli (Non-Executive Vice Chairman) • Dr. Arup Basu (Managing Director) • Sanjay Behl (Electric Mobility Sector) • Narasimha Jayakumar (CEO of Greaves Retail) • Akhila Balachandra (CFO)
Company Performance Highlights • Innovation and Growth: • Strong performance in last-mile mobility ecosystem. • B2B Products Portfolio: • Significant revenue increase in Engines and Excel Controlinkage segments. • Shift towards greener, fuel-agnostic products.
Electric Mobility Sector • Market Trends: • Decline in electric two-wheeler registrations. • Strong market position for Ampere and growth in three-wheeler market. • New Product Launch: • Introduction of Greaves Eltra, an Electric Cargo Vehicle. • FAME-II Subsidy Issues: • Ongoing challenges with the subsidy and proactive resolution steps.
Greaves Retail Performance • Q2 Revenue: • 9% year-on-year increase to Rs. 146 crores. • 12% rise year-to-date to Rs. 284.5 crores. • Focus Areas: • Enhancing vehicle uptime and productivity. • Expansion in spare parts and services domestically and in export markets.
Financial Overview • Consolidated Revenue: • Q2 FY24: Rs. 727 crores. • H1 FY24: 14% increase to Rs. 1,295 crores. • EBITDA Margin: • Healthy margin of 16.3%. • Balance Sheet: • Minimal debt and net cash position of Rs. 848 crores.
Strategic Insights • Engine Business Growth: • Positive outlook for profitability in electric 3-wheeler segment. • FAME II Subsidy Impact: • Potential level playing field post-subsidy expiration in March 2024. • Production-Linked Incentive (PLI): • Currently not part of the program but will consider future applicability.
Design and Market Strategy • Electric Vehicle Design Philosophy: • Inspired by the Arctic turn bird for upcoming NX platform products. • Market Share Concerns: • Decline attributed to lack of government subsidies; expected recovery as subsidies normalize. • Total Cost of Ownership (TCO): • Emphasis on long-term cost-effectiveness of EVs.
Conclusion • Company Transformation: • Commitment to a fuel-agnostic approach and leveraging partnerships for enhanced electric mobility offerings.
Contact Information • For inquiries: Varghese M Thomas (Greaves Cotton Limited), Anvita Raghuram, Bhushan Khandelwal (Churchgate Partners).
Disclaimer • Forward-looking statements involve risks and uncertainties; actual results may differ based on various factors.
Date and Context • Date of Call: August 11, 2023 • Quarter Ending: June 30, 2023 • Key Participants: Nagesh Basavanhalli (Non-Executive Vice Chairman), Akhila Balachandar (CFO), Sanjay Behl (CEO), Dr. Arup Basu
Financial Performance • Consolidated Revenues: Rs. 569 crores • EBITDA Margin: 11.3% • Debt Status: Debt-free with a net cash position of Rs. 739 crores • Outlook: Optimistic about stabilizing raw material costs and growth despite challenges in electric mobility.
Electric Mobility Sector Insights • Regulatory Changes: Introduction of AIS 156 Phase II battery norms and reduction in FAME II subsidies. • Market Performance: • Ampere achieved over 10% market share with 200,000 electric scooter registrations. • Three-wheeler segment saw 140% year-on-year volume growth. • Product Launches: Two new electric scooters launched; high-speed model planned by year-end.
Challenges and Strategies • FAME II Incentives: Cooperation with the Ministry of Heavy Industries; currently not offering FAME benefits due to access issues. • Market Dynamics: Lower dispatches attributed to industry slowdown and subsidy reductions; however, growth in three-wheeler and two-wheeler segments noted.
Path to Profitability • Key Advantages for Profitability: • Diverse electric portfolio • B2C and B2B market catering • Cost leadership • Technology investments • Synergies across group companies • Funding: $150 million received from UAE investor ALJ.
Growth and Market Trends • EV Market Share: Currently 10-12% in the three-wheeler market; expected to grow. • Sales Trends: Month-on-month growth of approximately 10% in EV sales; July figures indicate EVs nearing 15% of the total L5 market.
Management Insights • Excel Acquisition: Part of a succession plan to expand into new products and markets. • Financial Reporting: Suggestion to separate EV losses from overall business performance for better stock valuation. • Future Expectations: Anticipation of operational profitability by the end of the current year or early next year.
Conclusion • Management expressed gratitude for participant interest and encouraged follow-up questions.
Greaves Cotton Limited Q4 FY23 Earnings Call Summary
Financial Performance • Record Revenue: Rs. 827 crores for Q4, a 33% year-over-year increase. • Profit Before Tax: Rs. 56 crores. • Strong Balance Sheet: Consolidated net cash of Rs. 1,142 crores.
Strategic Shifts • B2C Operations: Now account for 66% of revenue. • Electric Mobility Segment: Over 100,000 retail sales of Ampere 2-wheelers. • Acquisition: 60% stake in Excel Controlinkage to enhance market position.
Challenges • Subdued Margins: Due to increased employee costs and compliance expenses. • EV Subsidy Status: Awaiting compliance review from the Ministry of Heavy Industries.
Market Insights • E-Mobility Growth: Ampere is the third largest seller in India. • Sales Trends: 14,000 primary sales and 13,300 secondary sales for 2-wheelers in March.
Financial Clarifications • EBITDA Margins: Breaking even at around 1%, with a contribution margin of 20-22% for E-Mobility. • Price Increases: Rs. 4,000 hike on key models since December.
Retail Expansion • Dealership Network: Significant expansion for EVs, with 150 AutoEVmart stores and 170 service centers established.
Future Outlook • E-Mobility Growth: Anticipated market penetration to double in the two-wheeler segment; faster growth expected in three-wheelers. • Capital Expenditure: Significant commitments for electric mobility and brand development.
Conclusion • Transformation Strategy: Focus on Engineering, Retail, and Electric sectors to build a profitable long-term business.
Company Transition • Shift from metal-based engineering to electric and mechatronic technologies. • Acquisition of Excel Control Linkage Private Limited aligns with strategic goals.
Financial Performance • Q3 FY23 consolidated revenue: Rs. 514 crores (6% YoY increase). • Lower revenue due to production halts in electric mobility. • EBITDA margins improved to 10.7% for standalone business. • Strong balance sheet with Rs. 1,171 crores in cash.
Growth and Market Strategy • Optimism for future growth driven by new product launches and market opportunities. • Transition to electronic sensors for automotive and industrial applications. • 22% CAGR over the past three years, supported by strong OEM relationships.
Sales and Market Dynamics • Strong primary sales in January; anticipated improvement in secondary sales. • AIS compliance transition costs absorbed; preparing for AIS phase-II. • Recovery in volumes noted in January, filling gaps from previous quarter.
Industry Challenges • Low EV volumes attributed to AIS phase transition. • Lag in vehicle registrations affecting secondary sales. • Anticipated price increases due to AIS phase-II regulations.
Competitive Positioning • Concerns raised about declining market share; emphasis on profitable growth strategy. • Commitment to enhancing brand identity and expanding dealer networks. • Focus on maintaining market presence amidst increased competition.
Future Outlook • Positive early responses to new product launches. • Management confident in strategic direction and market recovery. • Emphasis on profitability amidst regulatory changes and market conditions.
Conclusion • Management expressed confidence in Greaves' ability to regain market position while focusing on profitability. • Acknowledgment of challenges faced by smaller players in the industry.