The benefits of Greaves Cotton Q2 fell 11% to Rs 44 cr
New Delhi, November 5 () The engineering company Greaves Cotton reported on Tuesday a decrease of about 11 percent in its consolidated earnings to Rs 43.88 crore for the quarter ending in September, mainly due to the provision for debts doubtful
The company had published a profit of Rs 49.42 rupees in the same quarter a year ago.
Greaves Cotton made a provision of Rs 9 crore because of doubtful debts during the quarter.
Consolidated revenues from the company's operations increased 3.5 percent to Rs 512.42 million rupees during the reported quarter of Rs 495.08 rupees recorded in the corresponding quarter of the previous fiscal year.
Current economic conditions remain challenging. Despite the current economic scenario, our new growth levers and diversified portfolio have helped maintain growth in the first half (of 2019-20). We are cautiously optimistic of growth as market conditions improve, Nagesh Basavanhalli, MD and CEO, Greaves Cotton said in a statement.
The board of directors of Greaves Cotton has also approved in principle the acquisition of an 18.77 percent stake in one of its subsidiary companies, Ampere Vehicles Private Limited, India, through the secondary purchase for a total consideration that does not exceed Rs 60 million. This includes commitment rates and non-competition rates that do not exceed Rs 20 crore.
In accordance with the completion of the aforementioned acquisition, Ampere will become a wholly owned subsidiary of the Company, said Greaves Cotton in a regulatory document. The company's shares closed marginally higher at Rs 136.35 each in the BSE on Tuesday. PRS MR MR