Greaves Cotton reported revenue of Rs 514 crore in the third quarter of FY2023, up 6% year on year. The EBITDA was Rs 3 crore, and the profit after tax was Rs 6 crore. The transition to satisfy the new battery standards impacted EV production and primary revenues in Q3 FY2023.
The business has also signed a binding term sheet to acquire a 100% stake in Excel Controlinkage in multiple tranches. (Excel). The transaction values Excel Controlinkage at 7.5 times its normalised EBITDA for FY2023 for the first payment, subject to a maximum Enterprise Value of Rs 385 crore.
Nagpur-based Controlinkage is said to be one of the largest players in mechanical and electronic motion control systems with an integrated capability to manufacture Push Pull cables, levers and sensors. Its OEM customer segment includes commercial vehicles, construction equipment, agriculture, and marine among others.
“By investing in forward-looking technologies, we are unlocking new avenues of growth for Greaves. Our product roadmap with a wide range of new electric two and three-wheelers, and our new e-powertrain offering showcased at the Auto Expo 2023, bears testimony to our purposeful stride towards emerging as India’s most complete last-mile mobility ecosystem player. Our margins have improved, and our cash position continues to be strong. We are optimistic about sustained growth with all the new developments.“
Ashok Mrig, Founding Partner, Excel said, “We have created Excel as a proud engineering and product manufacturing company providing solutions to our OEM and aftermarket customers. We are confident that in partnership with Greaves with its multi-product, multi-location engineering capability is the right partner for Excel to grow its business globally and multiply Excel’s value in interest of all stakeholders.”
Dr. Arup Basu, MD, Greaves Cotton said, “Excel Controlinkage has a complementary product portfolio serving common industry segments. The combined capabilities will expand GCL’s technical competencies and act as a springboard for profitable growth across geographies on a larger base of engineering products and services.”
