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Engineering firm Greaves Cotton today reported a net loss of Rs 7.98 crore for the quarter ended September 30, mainly due to its divestment in its step-down German subsidiary Greaves Farymann Diesel.
The company had reported a net profit of Rs 33.56 crore in the corresponding quarter last fiscal.
Its revenues for the July-September quarter stood at Rs 448 crore against Rs 450.83 crore year ago.
"The company divested its entire stake in its step-down subsidiary in Germany and have provided for diminution in the value of this investments to the extent of Rs 39 crore which resulted in negative PAT," the company said.
"The profits for the quarter have been affected with our divestment in Greaves Farymann Diesel GmbH. With global business sentiments at an all time low, and Greaves Farymann Diesel not performing to expectations, the strategic business decision to exit was taken in the long term interest of Greaves Cotton," company's MD and CEO Sunil Pahilajani said.
The company manufactures farm and automotive engines, pumpsets and construction equipment.
"The 3-wheeler automobile, construction equipment and pump markets are currently going through a challenging business scenario. We have successfully been able to consolidate our market presence, maintained market shares and in some segments even increased market share.
"Greaves has been able to maintain topline by focusing on product development and superior customer satisfaction. The focused efforts and several initiatives have resulted in reducing costs and in maintaining profitability of the businesses," he said.
On its overseas business, he said: "International business has grown significantly and it is heartening to note that our strategy of widening global foot print across strategic markets of Middle East, East Africa and South East Asia have yielded positive response."
