Engineering firm Greaves Cotton today reported 10 per cent drop in net income to Rs 28.7 crore on tepid market conditions and higher overall cost.
However, the company reported a marginal rise in revenue at Rs 423 crore for the quarter as against Rs 412 crore a year ago.
While the market continued to be subdued in the first quarter, some early signs of revival are being seen in the automotive segment. This positive sentiment is expected to drive faster growth towards the second half of the financial year, said Managing Director and Chief Executive Sunil Pahilajani.
"Our first quarter revenue growth reflects positive sentiment on market revival. In addition, the initiatives taken by the company for material cost improvement are also providing steady benefits," he added.
The company saw improved performance in the three-wheeler segment. Genset segment transitioned to the new CPCB2 emission regime from this month and the company is expected to improve market positioning with the launch of its new efficient and cost competitive genset range, Pahilajani said.
Overall, the engines segment, which is the dominant business for the company, grew 5 per cent, but the infra equipment segment continued to suffer due to further decline in the industry.
Greaves Cotton is a multi-product, multi-locational company with focus on engines, gensets, farm and construction equipment.
