Greaves Cotton Limited (NSE: GREAVESCOT) Q2 2025 Earnings Call dated Nov. 13, 2024
Corporate Participants:
Nagesh Basavanhalli — Non-Executive Vice Chairman
Akhila Balachandar — Chief Financial Officer
Arup Basu — Managing Director
Narasimha Jayakumar — Chief Executive Officer
K. Vijaya Kumar — Chief Executive Officer
Analysts:
Kunal Sharma — Analyst
Zaki Nasser — Analyst
Sonal Minhas — Analyst
Manoj Jhetwa — Analyst
Bhavesh Mehta — Individual Investor
Kiran — Individual Investor
Saket Kapur — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Grieves Cottons Q2 and H1 FY ’25 Earnings Conference Call. We have with us today Mr. Nagesh Basavanhalli, Non-Executive Vice Chairman, GCL; Mr. Akhila Balachandar, CFO GCL; Dr. Arup Basu, Managing Director, GCL; Mr. K. Vijaya Kumar, ED and CEO, GEMPL; Mr. Narasimha Jayakumar, CEO, Greaves Retail; Mr. Chandrasekar Thyagarajan, CFO, GEMPL; and Mr. Atindra Basu, Group General Counsel and Company Secretary of the company.
We would like to begin the call with brief opening remarks from the management, following which we will have the forum open for an interactive question-and-answer session. Before we start, I would like to point out that some statements made in today’s call may be forward-looking in nature and a disclaimer to this effect has been included in the results presentation shared with you earlier. As a reminder, all participant lines will be in the listen-only mode. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Nagesh Basavanhalli.
Thank you, and over to you, sir.
Nagesh Basavanhalli — Non-Executive Vice Chairman
Thank you. Good morning, everyone. Thank you for joining the call today. Just from an overview, Greaves Cotton’s journey over the last five-plus years continues as we accelerate from a traditional engine company to a fuel-agnostic mobility solutions provider, driven by a strong purpose of empowering lives across India. Our primary strategy of getting closer to the consumer, extracting lifecycle value while going about in a fuel-agnostic and a sustainable manner is beginning to take shape. Multiple revenue streams have been created, our B2C part of the business continues to grow and in fact be a significant portion of the quarterly revenue. And also by integrating technology across the value chain, we are building an agile ecosystem that maximizes the synergies across the various businesses while adding value to the end consumer. So without any delay, let me hand over the discussion to the management to take you through the quarterly financials and the quarterly progress. First up will be Akhila Balachandar, the CFO of the company.
Akhila Balachandar — Chief Financial Officer
Thank you, Nagesh, and good morning, everyone. I’m pleased to report that the company delivered healthy financial results for the period under review, demonstrating the effectiveness of our strategic initiatives. During the quarter, we recorded consolidated revenue of INR705 crores, while on a standalone basis, our revenue reached INR468 crores. Excel recorded revenue of INR61 crore to reach INR124 crore in H1 with double-digit EBITDA margins. Our Engineering and Retail businesses each maintained growth quarter-on-quarter basis with 4% and 7% increases respectively for Q2 and 6% and 7% increase in H1, thus reflecting our strong market positioning.
Our Electric Mobility division also delivered impressive results, generating INR175 crores in Q2 and INR302 crores in H1. This growth was supported by a focused approach on new product launches and a defined path toward profitability. When we look at the combined performance of GCL and Excel, the exceptional financial results reflect our strategic efforts to diversify the product portfolio over recent years. Following Excel’s acquisition and integration, the consolidated revenue from GCL and Excel reached INR528 crores in Q2 and INR1036 crores for H1, giving us a firm foundation to provide a solid platform for future growth and innovation.
Profitability metrics showed significant progress. On a standalone basis, EBITDA for the quarter was INR59 crore, up by INR9 crores from last quarter and improved by 130 basis points. Combined GCL and Excel’s Q2 EBITDA stood at INR76 crores with margins at a robust 14.4 percentage. Standalone PBT for the quarter amounted to INR56 crore in Q2. In H1, our consolidated revenue reached INR1,345 crores with EBITDA of INR50 crore and PBT at INR21 crore. Standalone revenue for Greaves Cotton was at an impressive 7% growth amounting to INR912 crores, while EBITDA amounted to INR109 crores. Our strategic emphasis on margin improvement has been reinforced by efficient working capital management, helping us to maintain a strong return on capital of approximately 16% plus.
We continue to sustain a nearly zero-debt balance sheet with standalone cash reserve of INR350 plus crores, positioning us well for future investments and expansions. Looking forward, we remain committed to growth and transformation, leveraging our solid foundation and dedication to excellence to seize the future opportunities. Despite external uncertainties, our internal focus on profitability and strategic execution continues to drive our success. We are confident that the strategies implemented over the past few years will yield sustained performance.
Thank you. With this, I invite Dr. Arup Basu to share his remarks on the engineering business. Over to you, Dr. Arup.
Arup Basu — Managing Director
Thank you, Akhila, and good morning, ladies and gentlemen. I will talk about the engineering business, which comprises Greaves Engines and Excel. I’m pleased to report that Greaves Engineering continues to perform well. In H1 FY ’25, diesel 3-wheelers experienced strong volume growth. In gensets, in the second quarter, we experienced a more subdued performance compared to the previous quarters. The CPCB 4 plus norms became applicable in Q2 FY ’25, making diesel gensets more expensive and large scale purchases had occurred in the quarters prior to that. However, the underlying demand remains robust. As part of our commitment to sustainability, innovation and conspicuous customer value, we have introduced an emission control kit, which can be retrofitted to enable even older gensets comply with the latest emission norms.
Excel with its customer-first approach and efficient operations continues to deliver industry-leading profitability with exports constituting a significant proportion of revenues. In H1 FY ’25, while Excel’s share of wallet with OEMs remained intact, sectoral demand growth, especially in agri was muted due to a slowdown in infrastructure project execution, reduced mining activity and lower fleet utilization due to heavy rains. With the anticipated increase in infrastructure spending, demand is expected to recover in H2. The agriculture industry too is showing signs of improvement.
Our diversified export product portfolio and geography is part of our strategic plan for sustainable profitable growth, while mitigating related risks. Exports accounted for over 10% of Greaves Engineering revenue with motion control solutions from Excel contributing to about 65% and engines the balance. Looking ahead, we are well-positioned for sustained growth. Our R&D continues to focus on ensuring compliance with the upcoming regulatory standards, which is an ongoing program, application engineering, expanding the range of fuel agnostic IC engines and gensets and building a new line of business in electric powertrain.
For the next commentary, I now hand over to my colleague, Narasimha Jayakumar. Thank you and over to you, Narasimha.
Narasimha Jayakumar — Chief Executive Officer
Yeah, good morning, everyone. This is Narasimha Jayakumar, CEO of Greaves Retail. A quick overview. Greaves Retail continues to be amongst the leading players in the 3-wheeler ICE parts segment. We are also making significant strides in the electric 3-wheeler or the e-rickshaw powertrain business and we are capturing greater market share as we continue to expand our presence. In the e-rickshaw segment, we are already the market leader for parts which are made in India and this business is growing strongly. We launched several new products targeting the e-rickshaw segment covering now a full range of motors, controllers, DCDC converters and other vehicle parts like tires.
Greaves Retail now with a wide-ranging network of over 250 distributors, 10,000 plus retailers and 25,000 mechanics has built a strong ecosystem, which fosters growth connections and seamless experience for our customers. Our mechanic loyalty program has now over 8,000 active scanning mechanics on a monthly basis. Our three-wheeler — our multi-brand parts now cover both CNG and 2-wheeler parts also continue to grow well. On the services side, Greaves Care franchising operations continues to be the leader in multi-brand servicing for 3-wheelers and increasingly, we are enabling the network to service electric 3-wheelers and electric 2-wheelers and we have at the end of September, more than 210 franchised outlets all over India. And today, most of the bookings, 70% of the bookings are done by the Greaves Care app providing unmatched digital convenience to our vehicle owners.
For the second half of the year, there will be greater focus leveraging Excel’s manufacturing capabilities and development of new aftermarket part lines for the heavy commercial vehicle, the head CV and the construction equipment segment, both of which are booming given the massive infrastructure push and the construction activities all over India. Across Greaves Retail, digitalization is playing a key role to drive greater supply chain efficiencies and to improve our overall customer experience.
Thank you and over to you K. Vijaya Kumar, CEO of Greaves Electric Mobility. Thank you.
K. Vijaya Kumar — Chief Executive Officer
Thank you, Narasimha. Very good morning, ladies and gentlemen, and thank you for joining us today on our earnings call. This is Vijaya Kumar, Executive Director and CEO of Greaves Electric Mobility. I’ll briefly talk about the performance of GEM. We call Greaves Electric Mobility as GEM internally, post which we can commence the Q&A session.
Greaves Electric Mobility reported a very healthy performance, reflecting our commitment to growth and innovation last quarter. We continue to be a very key player in the E 2-wheeler and 3-wheeler segments, focusing on affordable mobility solutions with the goal of making Har Gully Electric Our volume saw a remarkable growth in Q2 FY ’25 surging by 30% in the 3-wheeler segment and by 29% in the E two-wheeler quarter-on-quarter. This first can be attributed to our new product introductions and other product enhancements, which have been well received in the market.
I’m also happy to inform that we have been developing our financial retail partnerships and we have signed up with multiple financing partners, including Shriram Finance to enhance national-wide financing options for our L5 vehicles. While we are encouraged by our sales growth, our key thrust is on efficiently ramping up our presence and reach to further drive visibility and our volumes across the country. Our robust support network includes over 400 sales and service points for E2 wheelers and more than 250 of 3-wheelers, allowing us to deliver exceptional customer service. We are also conducting various customer care camps and training programs for mechanics to certify them as Ampere certified technicians.
Our strategic focus always has been on optimizing our cost and growing sustainably. To enhance our pricing power, we are actively optimizing our bill of material cost across our entire product range and are actively engaging with suppliers across the spectrum on this. This has resulted in a 7% to 12% decrease in our BOM cost across different models in H1 FY ’25. This is also a testimony of our intent and ability to prudently manage our balance sheet while driving growth, built on the economies of scale and knowledge expertise of these.
We are also thrilled to announce that Axar Patel, our favorite Cricket World Cup T20 champion has joined as our brand advocate to promote electric mobility. Our electric 3-wheeler Greaves Eltra City 3 is registered in India book of records for the longest ride on a single charge by any EV 3-wheeler in India, covering 225 kilometers on a single charge. Our management team is committed to regaining our FY ’20 — Q4 FY ’23 performance through a focus on innovation, dealer expansion and ramp-up of our new after-sales initiative called Ampere Care. We continue to grow month-on-month and our volumes grew nearly or more than 70% over Q2 in the month — festival month of October, which has just concluded last month. As this growth has been across two-wheeler and three-wheeler building on other new products and the new models which we have launched in H1. So as we move forward, we are continuing to work on enhancing our existing models, introducing new variants across our entire product range. Our key differentiators include best-in-class LFP batteries, affordable pricing and strategic financing options through Greaves. Together, these initiatives position GEM for sustained growth and success in the ever-evolving electric mobility space.
Thank you, ladies and gentlemen. That concludes my opening remarks, and I would now request the moderator to commence the Q&A session, please.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question-and-answer session. [Operator Instructions] Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Kunal Sharma from SP Capital. Please go ahead.
Kunal Sharma
Yeah. Hi, good morning, team. So first question I wanted to ask on the reason that we have been highlighted, which is a INR15,000-odd crore revenue. So what synergies that you are working on the same? And from where do you see the major contribution amongst all our five verticals? Will it be from the retail or Excel or EV.
Akhila Balachandar
Thanks, Kunal. Let me take that. This is our Board vision at a strategic level and the direction that the Board has set for the company. We — if you see the three businesses that we have focused over the last few years in our transformation journey, we believe all the three are now at an inflection point and set to fire. So we expect all three to grow and contribute to our overall vision. And the idea is, as part of the transformation strategy to diversify from our single product, single company dependence to a fuel-agnostic, multi-fuel multi revenue stream the diversified revenue stream company which is therefore protected and resilient to any external market forces. Hope that answers the question.
Kunal Sharma
Okay. So will you be able to give any percentage allocation if you could just share the ballpark number, right? You have mentioned the three verticals that is right, but will it be from the higher chunk from retail or EV and engineering.
Akhila Balachandar
The focus is on diversifying from our original dependence on auto engines, auto diesel engine rather, and how we diversify out of that is the strategic goal and transformation agenda. And therefore, there will be multiple contributors to this overall journey. And if you see what we have — what the Board has set out for us, it is also a mix of inorganic and organic growth. So, I’m sure that multiple levers will play into this. Thank you.
Kunal Sharma
Okay. My second question to Mr. Jayakumar. On the retail business, see, if we are growing at a mid-single digit, right? So however, the category is so large, currently expecting the growth of in the range of double digit and do you see this category can become a 2 to 3 times going forward in the, let’s say two to three or five years that whatever the reasons that you have been given? And if yes, then what like when do you see this kind of growth?
Narasimha Jayakumar
Yeah. So thank you for the question. I think certainly, the categories in which Greaves Retail operates, as you know, we span both from service sales to parts across different commercial vehicle asset types ranging from 3-wheelers, electric 3-wheelers to small commercial vehicles to all the way to head CVs and the CE segment that I talked about. I think certainly, there is a massive headroom for growth and we are in the — I think the business is set for that kind of a growth as well. I can’t obviously speak for exact numbers, but the opportunity exists. And we are actually gearing up — we’re making a number of improvements in our supply chain, sourcing and there are a variety of areas to be able to set up the business for faster growth.
Kunal Sharma
Okay. But when do you see like I just wanted to ask on that like what — what’s your aspiration to be there?
K. Vijaya Kumar
No, I think we should — we should be seeing faster growth in the coming quarters is what I can say. Yeah, because as you are aware in the first half of the year, we also had the general elections and also very increment weather as one of my colleagues also commented. Suddenly, we are looking at higher growth in the coming quarters.
Operator
Thank you, sir. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. We’ll take the next question from the line of Zaki Nasser from Nasser Investments. Please go ahead.
Zaki Nasser
Good morning. And I think I should congratulate the Board on the broad great outline for 2030. Sir, my two questions are, sir, if you set out of INR15,000 crore four years hence or five years hence, we should start seeing the growth immediately from this year onward, at least a small bit of growth. How do you plan this? And my second question is, sir, can — this requires a pretty large capital. So what is your thoughts on getting the capital for this? Thank you.
Akhila Balachandar
Thank you, sir, for the question and I’ll take both your questions in order. The first one as I said, this is the vision that the Board has set out. And yes, over the last few years, we have been on this transformation agenda and we have put in place all the levers for the growth in terms of both revenue, cost management, working capital management and also on the capital efficiencies itself. So, I’m sure all the levers are in place and give the guidance of the Board and we will be able to — the aspirations that we’ve set out for ourselves. The second question on the availability of capital, I would like to put two points here. One, we are highly efficient in our working capital management and that is something we are constantly working on. Two, as you can see, we have currently approximately INR350 crores of cash available on the books, which will strengthen our focus to be able to invest in organic and inorganic growth, both internal capex as well as inorganic growth. Do we need more capital? As and when the need requires, the Board is very cognizant and will take whatever required measures are to be done to ensure that the growth opportunities of the companies are not starved and we will not starve for capital and the requisite initiatives will be taken on that front. Thank you.
Zaki Nasser
Thank you. Thank you and best wishes, ma’am.
Operator
Thank you. We’ll take the next question from the line of Sonal Minhas from Prescient Capital Investment Advisors LLP. Please go ahead.
Sonal Minhas
Hi, this is Sonal Minhas. Am I audible?
Operator
Yes, sir. Please proceed.
Sonal Minhas
Yeah. Ma’am, my question is with regard to Greaves Retail. I wanted to understand the reason for a dip in the EBITDA margin of Greaves Retail for this quarter when we compare to Q2 last financial year. If you could just give some trajectory commentary around that. That will be helpful. Thank you.
Akhila Balachandar
Sure, Sonal. Thanks for the question. So Sonal, if you heard Mr. Narasimha, our CEO for the business, Greaves Retail is a business we are having a lot of opportunities for growth. It’s a high margin business. And what we have done over this year, we’ve done investments in technology, people, resources, some amount of brand building at the grassroots level. All these are investments, which will help us grow the business over the next few years. And that is the reason why there is a dip in the EBITDA margins. Otherwise, the business continues to be robust and at a operating margin that also we focus on internally, we continue to ensure that the margins are in line with what we are building for.
Sonal Minhas
Okay. So over time, this should basically go up because there are additional investments in the business basically.
Akhila Balachandar
That’s correct.
Sonal Minhas
Got it. My second question is somewhat linked to the vision, ma’am, basically. And I’m sure there are some guidelines on profitability, return on capital that the Group and the leadership basically believe we should be aiming and targeting at. So while 6x in six years looks good, interesting. What is the flip side of this in terms of these are the minimum guardrails of reaching EBITDA, what are the kind of businesses you would want to be in, what are the businesses you don’t want to be in for reaching this number at a profitability, which is meaningful for you as well as well as the shareholders. If you could just throw some light around that, that will help disclose the 360 degree around this.
Akhila Balachandar
Yeah. Sure. If you see the last eight, 10 quarters performance of the company and I would like to stress on that, we have been extremely sharply focused on cost management, improving EBITDA and coming back to our pre-COVID levels of 13% plus EBITDA margins. This is a journey we embarked on and I think we have now demonstrated that fairly consistently over the last six number of quarters. Now this is a benchmark that we have and that is something we’ll continue to work for. In terms of working capital, again, if you take last seven, eight quarters trend or I would say even more than that 10 quarters trend, we have been again prudent and working on optimizing our working capital, which again translates into a very high return on capital employed. These are all basic hygiene requirements that the Board has mandated us and this will therefore continue in our newer initiatives. Definitely, some of the newer initiatives will require investment in resources, technology, some amount of capex. But all these, we have our internal guardrails well in place and everything will be ensured to these are all accretive to the overall organizational vision.
Sonal Minhas
So any broader guidance on when do you plan to reach close to 13% or let’s say, more than double-digit EBITDA margins basically going further.
Akhila Balachandar
So if you see even my quarter 2 results, or if you take the trend, GCL plus Excel, our EBITDA margins are at 14.4 percentage. Now therefore, we are continuing to trend in a 13% to 15 percentage range, which is what I would commit to because there are cyclicalities involved. There will be quarters where we will invest more. There will be quarters as well. But overall, I think the man — what we are working towards is a 13% to 15% EBITDA margin range.
Sonal Minhas
Okay. All right. And just a follow-up on this, like at the current EBITDA margins of minus [Phonetic] 30% on mobility, if this is to be extrapolated, at what scale do you expect this business to breakeven? It’s 175 CRO top-line right now. Do we say 3x from now this isn’t break season? Just asking a ballpark here.
Akhila Balachandar
Sure. See, Greaves Electric Mobility, it’s a very different business. They operate on two segments, the electric two-wheeler and electric three-wheeler. Both of these have their own nuances. The mandate to the organization is to grow the revenues and there is a path to profitability. I would not be able to give a forward guidance exactly with dates and quarters in which we plan, but there are internal well-defined path to profitability. I hope that answers the question.
Sonal Minhas
Sure. For now, yes. Thank you.
Operator
Thank you. We’ll take the next question from the line of Manoj Jhetwa from KS [Phonetic] Securities. Please go ahead.
Manoj Jhetwa
Good morning and thank you for the transformation journey, which we have started some few years back. So my first question pertains to Madam Akhila, what are the genuine endeavors a company should think one has to do it rather than increasing incubating new businesses or increasing the top line, which would really help in improving the margins and reducing the cost because I see the RMC cost stands around 69%, which seems to be very high right now. So what could be the focus endeavor of the company at this juncture right now. This is my first question.
Akhila Balachandar
Can you repeat the question? I could not really understand.
Manoj Jhetwa
Madam, my question is regarding the — what could be the genuine future endeavors or the present focus endeavor of the company in improving the EBITDA margin, PAT margin, vis-a-vis incubating the new businesses?
Akhila Balachandar
Sure. So going back, if you see our 10 quarters journey, we have been consistently improving our EBITDA margins. And post COVID, I think we were almost at a negative margin and from then quarter-on-quarter, we have worked internally to ensure that the margin improvement journey continues around last quarter 3 — quarter 2, quarter 3 of last year onwards, we have been now consistently reaching the 13% plus EBITDA margin that we used to do pre-COVID levels. This is a endeavor of the organization and this is what we remain committed to, an EBITDA margin of in the range of 13% to 15%. Coming to your question on RMC, if I were to look at the standalone RMC, again, we have been able to manage and here I must also give credit to the soft commodity cycle currently going on, plus a lot of internal initiatives that we keep working on a very controlled and consistent improvement in our RMC percent. If I were to take H1 last year, our RMC percentage was 68.5%. Current year at H1, we are at 67.4%. So that is again a continuous journey that we keep on working and hopefully all that translates into an improved EBITDA margin. I hope that answers your question, sir.
Manoj Jhetwa
Yeah, yeah. Thank you. Madam, my second question is pertaining to the Greaves Finance, Greaves Retail and EV mobility business and new business. As you onboarded Mr. Ramachandran to look after the EV business and mobility business. So are there unlocking for the shareholders, which could take place in two or three years down the line where it could be listed as a separate entity in all the three segments?
Akhila Balachandar
So the new business head for EV and mobility business essentially is part of our overall retail strategy to grow the business. Any decisions on unlocking of value, capital raise, this is something that the Board is cognizant of and we will come back to you as and when the Board gives a different decision.
Operator
Thank you, ma’am. [Operator Instructions] We’ll take the next question from the line of Bhavesh Mehta, an Individual Investor. Please go ahead.
Akhila Balachandar
Yeah. Hello. Good morning. Ma’am, can you highlight what are we doing on the non-automotive business side? And like we mentioned in the Q1 presentation that we are doing something on the marine, industrial and aerospace side. Can you highlight a little bit on that, what are our aspirations there? And also what are we exactly doing in the Greaves technology business and where do we aim to take that?
Arup Basu
So maybe — this is Arup Basu, maybe I can answer a little bit on the non-automotive question that you have. So as you know, we make prime movers and it’s a fuel-agnostic approach that we have. So the prime movers go for automotive applications in 3-wheelers, etc. and also for non-automotive applications. So within that, while gensets is one-product which uses engines, there are also other applications for marine in terms of boats, etc., that prime and we’re increasingly seeing an emphasis on river infrastructure and states with rivers and also coastal movements. So that’s one area where we — where engines are used for prime moving. And there’s again a fuel agnostic approach there and that the demand for that is in a way linked to infrastructure growth and overall underlying economic growth. So that’s the work that’s going on. We also are engine provider for fire pumps, which is a very specific specialty application because of the nature of the application of the fire pump. That’s another sector that we historically have catered to and that is also linked to the growth of infrastructure because every high rise that gets created or office building that gets created requires these measures as part of the basic infrastructure. And those are the ones that — whose growth is linked to the overall industry growth. Thank you.
Nagesh Basavanhalli
Yeah. And Arup, I can just add to the gentleman’s other question. So just to add to the non-auto, keep in mind, in addition to Dr. Basu talking about a lot of the OE applications, there is a non-auto aftermarket application, which Mr. Narasimha and the GR team leverage, for example, in terms of several different customers, railways telecom, etc. right? So there are lot of non-auto spares and service applications that the Greaves Retail team addresses. So it was part of our diversification strategy when you look at our engine volumes going from auto to non-auto, point number one. Point number two, very briefly, you also touched upon Greaves Technologies. That’s a small incubated new business, which really does engineering services to some global MNCs based primarily out of India, but serving both local and international markets. What it of course gives us is access to high-quality engineering talent, which does engineering services outside, but also helps in-house companies like electric mobility or our e-powertrain areas assimilate some of that technology and assimilate some of that integration. So it’s a smaller startup right now. Thank you.
Bhavesh Mehta
So what — like where can we see Greaves Technology in next three years maybe?
Nagesh Basavanhalli
So again, while we don’t want to get into forward guidance, but the important thing is from a competency curve, they started out with a mechanical mechatronics, vehicle engineering type of services. So they do work for four-wheeler global auto majors, right? And then they’re doing vehicle level work from engineering services that now got into software and embedded systems. So you can see some of the competency curve moving up the value chain, right? And you can also see them evolving more in terms of the electric mobility ecosystem because they’ve been working closely with the Ampere team, right? And both internal and external, they are not captive. We obviously cater to both global and Indian consumers. Thank you.
Operator
Thank you, sir. We’ll take the next question from the line of Kiran, an individual investor. Please go ahead.
Kiran
Hi, thank you for the opportunity. Sir, two questions, two long-range questions. One on the EV side Ampere. So if I look at our market share back in ’21, ’22, it was about 12%. Now on a run rate basis data at about 3%, both two-wheeler and three-wheelers combined. So we are losing market share while the market is growing exponentially. So two part question to this, right. One, are we continuing to focus on Tamil Nadu because there’s another Tamil Nadu-based player who has come up with excellent products in the two-wheeler space. So I’m just worried that we’ll continue to build market share. That is one question if you can address how are we kind of trying to regain market share. The second question — second part question is, are we trying to do an IPO or a demerger of this EV mobility business, which will allow us to focus and get the right parameters in?
Nagesh Basavanhalli
So I think I’ll ask Vijaya Kumar to come in and answer the first part. The second part, I think the CFO has addressed earlier on. The Board has already said in terms of fund raise that they will be looking at a lot of options. That statement is out there. And as and when the Board has an update to that, we will update you on the second part of the question. Mr. Vijaya Kumar, please answer the first question, please.
K. Vijaya Kumar
Yes. Thank you for the question. See, from a market share standpoint, first is that we are registering very robust growth month-on-month, quarter-on-quarter, primarily based on our new product. The Nexus which we launched two quarters before is doing very well. Our reference sales from our customers based on our service and spare parts availability after-sales service is also doing very, very well. So now what — to your specific question of Tamil Nadu and South, our footprint is growing not only in Southern India, our market shares are at least double-digit numbers to what you have mentioned in the Eastern region and we are building our market-share and volume trends in North and western part of India. So we are a pan-India organization and you will be able to see those results and responses as we go forward.
Kiran
Got it, sir. Thank you for that. Sir, then from a company strategy perspective, it’s very commendable, not just EV, right, the overall Greaves Cotton company it’s very commendable that we’ve got a 6x in six years kind of ambition, which is — which was at about 15% CAGR, right? So 15% CAGR from — so what I’m struggling with a very, very ambitious target, which is fantastic, right? If I look at the last 10-year data, right, we were in March 2014, we were at INR1,700 crore revenue. Right now, March ’24, we closed at INR2,600 crore revenue, right? So we’ve not even doubled in 10 years. So I’m just trying to figure out is acquisitions are very, very large part of like is it the delta to INR10,000 crores from acquisitions coming or is it — are there some business units you are extremely bullish on for the 6x in six years? I’m just trying to figure out what suddenly exploded in our industry that we can aspire to 6x in 6 years while we have not even doubled in the last 10 years.
Nagesh Basavanhalli
So I think, Akhila, the CFO answered that question, right, up front. I think, she did mention that at the end of the day, it will be a combination of both organic and inorganic means, right? And opening up the multiple streams of revenue from a single cylinder, single industry diesel engine, which was catering to 300,000 vehicles a year, right? That was a sector Greaves Cotton wasn’t, right? Today you are playing in diesel plus CNG on the auto side, plus electric, so pure agnostic. You’re playing in auto plus non-auto on the engines on the component side. You’re playing in multiple geographies or from the Excel, you’ve added construction off highway marine segments with a predominant version of that being high profitable global exports. Right? So that’s one vertical. The second vertical being in retail and somebody asked this question in terms of capital allocation, asset light high ROC business, right? Franchisee owned, franchisee operated vehicles, franchisee stores, retail chains, which offer spares, highly profitable spares, right? Again, there the diversification was going from a three-wheeler diesel engine spares to three-wheeler fuel agnostic plus two-wheeler plus now with Excel into other markets. So plus moving towards the digital ecosystem, right? That’s a second. The third is, of course, the electric mobility, which has a road map of its own two-wheeler and three-wheeler. So I think when you just look at it organically, the multiple forms of revenue, the multiple applications, the multiple geographies, plus inorganic options is what the Board is talking about.
Kiran
Got it. Thank you so much.
Operator
Thank you. We’ll take the next question. [Operator Instructions] We’ll take the next question from Saket Kapur from Kapur & Company. Please go ahead.
Saket Kapur
Yeah, Namashkar, sir. Thank you for the opportunity. Sir, if you could just explain the line item for other expenses for this quarter, what are the — any one-off item that has gone into it?
Akhila Balachandar
Sure, let me take this. Essentially other expenses, all other expenses apart from RMC this includes even employee costs. This includes consulting costs, traveling, all the rudimentary, everything, correct, I understand that your question is essentially it has gone up. As I said earlier we are also focused on growing new businesses. So we’ve made investment in resources, in technology and product development and business development. Now, some of these, therefore, will go into the line other businesses. And therefore, there is an increase over the past years compared to past years.
Saket Kapur
Because, ma’am, for employee benefit expenses, that has itself gone up by INR10 crores quarter on quarter and INR12 crores by year-on-year.
Akhila Balachandar
We have been investing in the resources, we’ve been investing in technology. We’ve been investing in business development, brand building to some extent, and all this is imperative to enable the future growth of the organization.
Saket Kapur
So when, when can we reap the benefit of the same? And especially for the category electric mobility and other vehicle segment wherein we have losses closer to the tune of INR100 crores for the first half. How should we look at in terms of H2 going ahead. And next question is on the cable and the control lever part herein where are we in terms of the ecosystem for this data center? If you could just give answer of these two points.
Akhila Balachandar
Sure. So if you look at Greaves electric mobility, like Mr. Vijaya Kumar explained, we have had new launches, both in E two-wheelers and three-wheelers. And there is a good acceptance of that in the market. We have grown quarter on quarter 29% in two-wheelers and 30% in three-wheelers. And we have a very strong path to profitability. So, while I would not be able to give forward guidance, I think some of our past performances can give confidence in our [Indecipherable]. In terms of cable, push pull cables. Can you please repeat the question?
Saket Kapur
Yes, ma’am. It’s regarding the data center ecosystem. Are we there as a player supplying to the data center ecosystem in terms of cable or any other functionality?
Akhila Balachandar
Sure. In terms of push pull cables I don’t think data center is one of the industries we operate in, but maybe the genset business, which is where we operate in the data center business, that’s an upcoming business. And yes, we are very much having our plans to enter that business also.
Arup Basu
Akhila, I can add to maximize your complete detail. As Mr. Nagesh mentioned we have a large non-institutional, non-auto business within Greaves Retail and Greaves Retail is already working on solutions on the lines of energy management services, which cover the telecom and the data center segment. So essentially things like battery packs, the spare parts around that, the maintenance services and so on. So obviously we won’t be able to share more details on that, but I just want to let you know that we do play in that segment.
Operator
Thank you very much, sir. Ladies and gentlemen, with that, we conclude our question-and-answer session. [Operator Closing Remarks]