Greaves Cotton - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 143; MCap: Rs. 3303 crore)

Greaves Cotton registered Q4FY21 numbers which were broadly in line with our estimates on revenue front. However, margins came in below our expectations led by normalisation of costs on a sequential basis. Further, balance sheet continues to remain strong with a closing cash balance of Rs. 275.8 crore.

Q4FY21 Earnings Summary

- Standalone revenue came in at Rs. 457 crore, which increased by 27.1% on a YoY basis whereas it grew 4.6% on a sequential basis, (vs. I-direct estimate of Rs. 465 crore)

- Consolidated revenue grew, 35% YoY & 5.2% QoQ led by strong growth in EV segment. The engine segment revenues came in at Rs. 425 crore, up 28% YoY & 3% QoQ. On the other hand, E-Mobility segment revenue grew by 100% YoY to Rs. 69.09 crore whereas the same grew 19.5% QoQ. Despite the revenue growth in EV segment, EBIT losses increased from Rs. 7.92 crore in Q3 to Rs. 11.2 crore in Q4FY21

- Standalone EBITDA increased by 54.9% YoY to Rs. 47.3 crore and declined 12% QoQ (below our estimate of Rs. 56.4 crore). Standalone EBITDA margins improved by 186 bps YoY to 10.4% whereas the same declined 196 bps on a QoQ basis. Margins declined sequentially given topline was almost flat whereas employee and other expenses grew 20.6% and 21.6% respectively

- On a consolidated basis, EBIDTA came in at Rs. 41.59 crore, up 76% YoY and down 15% QoQ. Consolidated EBIDTA decline sequentially and also came in lower than standalone due to EBIT loss of Rs. 11.2 crore in the EV segment

- The company has reported adjusted PAT (adjusted for exceptional item) at Rs. 23.6 crore, up 71% on YoY basis. Tax rate for the quarter stood at 38.6%

- During FY21, Greaves Cotton generated Net CFO of Rs. 172 crore and ended the year with a total cash balance of Rs. 275.8 crore

We would come out with a detailed report post the conference call.

Shares of GREAVES COTTON LTD. was last trading in BSE at Rs.143.4 as compared to the previous close of Rs. 149.5. The total number of shares traded during the day was 204887 in over 2366 trades.

The stock hit an intraday high of Rs. 153.15 and intraday low of 140.05. The net turnover during the day was Rs. 30006162.

Source : Equity Bulls

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