Greaves Cotton surged 5.32% to Rs 139.50 at 15:24 IST on BSE after the company reported a net profit of Rs 27 crore in Q2 September 2014 compared with net loss of Rs 8 crore in Q2 September 2013.
The Q2 result was announced during market hours today, 5 November 2014.
Meanwhile, the S&P BSE Sensex was up 50.98 points or 0.18% at 27,911.36.
On BSE, so far 3.03 lakh shares were traded in the counter as against average daily volume of 58,000 shares in the past two weeks.
The stock hit a high of Rs 143.40 and a low of Rs 132.55 so far during the day.
Greaves Cotton's revenue declined 1.56% to Rs 441 crore in Q2 September 2014 over Q2 September 2013. EBITDA rose 12% to Rs 56 crore in Q2 September 2014 over Q2 September 2013.
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The net loss in Q2 September 2013 was on account of divestment of one of the step down subsidiaries, Greaves Cotton said.
During the quarter, the company launched a new range of CPCB II complaint engines and gensets which offer better life cycle cost and performance to the customers. The company is in the process of setting-up a new genset assembly facility at Pune which will enhance its production capacity, Greaves Cotton said. The company also closed manufacturing of its construction equipment due to non-viability of operations on account of continuing losses. The company has made provisions arising due to this under exceptional items amounting to Rs 15 crore, Greaves Cotton said in a statement.
Commenting on the results, Mr. Sunil Pahilajani, MD & CEO, said, "While our half yearly financial results show marginal growth in the revenue, the dominant engine segment has shown revival and good improvement in performance which augurs well for the company in coming quarters. The company is focusing on improving profitability by exiting non-core and loss making businesses. The company is strengthening its aftermarket spares and service network and international business which will result in strong revenue stream over next two-three years".
Greaves Cotton is one of the leading engineering companies in India with core competencies in diesel/petrol engines, farm equipment and gensets.
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