During Tuesday’s trading session, the shares of one of India’s leading diversified engineering companies surged nearly 3.8 percent to Rs. 182.05 on BSE, after the company’s EV unit secured the government approval for EMPS Scheme Incentives.
With a market capitalisation of Rs. 4,098.6 crores, at 02:33 p.m., the shares of Greaves Cotton Limited (GCL) were trading in the green at Rs. 176.45, up by nearly 0.6 percent, as against its previous closing price of Rs. 175.45.
What’s the News:
According to the latest regulatory filings with the stock exchanges, the Ministry of Heavy Industries (MHI) approved the registration of two-wheeler models of Greaves Electric Mobility Private Limited (GEMPL) under the EMPS Scheme.
The two-wheeler models that have been approved—Nexus, Primus, Magnus, and Zeal—make the company eligible for the Government of India’s EV demand incentive scheme.
GEMPL’s three-wheeler business through its subsidiary, was already qualified for incentives under the EMPS Scheme.
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With the latest approval for its two-wheeler range, the company is now well-positioned to further drive sustainable and accessible mobility solutions across India.
Greaves Electric Mobility is the e-mobility business of GCL and a leading player in Electric Vehicle (EV) technology in India. It is engaged in the business of designing and manufacturing EVs and has established a strong presence in the electric 2-wheeler and 3-wheeler segments.
What is EMPS?
The Electric Mobility Promotion Scheme (EMPS) is an initiative by the Government of India, specifically the Ministry of Heavy Industries, designed to accelerate the adoption of EVs in India.
The scheme had a budget of Rs. 500 crore for its original four-month duration, aimed at providing financial incentives to buyers of electric two-wheelers (e-2W) and three-wheelers (e-3W).
The EMPS was initially launched on 1st April 2024 and was set to run until 31st July 2024. It has since been extended, with the current deadline being 30th September 2024, and allocation increased to Rs. 778 crore.
Under the scheme, EV buyers can receive subsidies of up to Rs. 10,000 per e-2W and Rs. 50,000 per e-3W.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 13 percent from Rs. 568.6 crores in Q1 FY24 to Rs. 639.7 crores in Q1 FY25.
Similarly, its net loss was reduced during the same period from a loss of Rs. 25 crores to a loss of Rs. 0.2 crores, representing a growth of 99.2 percent YoY.
In FY24, GCL introduced a fuel-agnostic powertrain solution that meets OBD-IIA standards for the 3W industry. This solution was positively received in the market, contributing to a 32 percent volume growth in the diesel segment.
GCL maintained its leadership position with a 53 percent market share, achieving a growth of 27 percent and revenue growth of 22 percent in the same fiscal year.
Stock Performance
Shares of Greaves Cotton have delivered positive returns of nearly 20.6 percent in one year and around 27.5 percent in the last six months. So far in 2024, the stock has given about 13 percent of positive returns.
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About the Company:
Greaves Cotton Limited is engaged in the manufacturing of engines, engine applications, power gensets and trading of power tillers, and spares related to engines, EVs, infrastructure equipment etc. It is a leading designer and manufacturer of engines for automotive and non-automotive applications.
Written by Shivani Singh
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