Greaves Cotton Ltd. reported a growth of 66 per cent in net profit at Rs. 78 crores for the quarter ended March 31, 2012, as against Rs. 47 crores in the same period last fiscal. Net sales for the period stood Rs. 445 crores (Rs. 454 crores). The company declared a final dividend of 10 per cent or Rs. 0.20 on a face value Rs. 2. With this, the total dividend for the fiscal, including interim dividend, stood at 110 per cent or Rs. 2.20. The EBIDTA margin for the quarter stood at 13.5 per cent as against 14.5 per cent reported in the same quarter last year.
For the full year, the company registered net sales of Rs. 1,753 crores (Rs. 1,600 crores). Net profit for the year was at Rs. 185 crores (Rs. 155 crores), an increase of 19.4 per cent. It reported EPS of Rs. 7.60 (Rs. 6.35).
The company had an advantage of exceptional income of Rs. 43 crores during Q4 of FY 2011-12. This comprised profit from sale of land and building at Rs. 77 crores and provisions for obsolescence of inventory and diminution in value of investment of Rs. 20 crores and Rs. 14 crores respectively. The normalized PAT (without exceptional item) for Q4 and FY 2011-12 stood at Rs. 37 crores and Rs. 144 crores respectively.
Greaves Cotton endevours to leverage its strengths in R&D and product development to widen the 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, Managing Director & 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.”