Escorts posts Net Profit of Rs 16.18 crore in Q2 against a loss of Rs 7.86 crore

Escorts  is engaged in manufacturing of tractors. The company operates in various business segment: agri machinery, auto product, railways equipment and others services. Its railway equipment product offering includes brakes, couplers, shock absorbers, rail fastening systems, composite brake blocks and vulcanized rubber parts. In the auto components segment, Escorts manufactures auto suspension products, including shock absorbers and telescopic front forks. The Company also operates in the information technology enabled services (ITES) and financial services sectors.

Today Escorts announced its Q2FY16 results, the total income of the company reduced by 19.24 per cent to Rs 801.66 crore in against Rs 992.63 crore in Q2FY15. The revenue from Agri Machinery Products reduced by 24 per cent to Rs 609.73 crore y-o-y basis, the revenue from Auto ancillary products decreased by 9.59 per cent to Rs 24.24 crore on yearly basis. The Revenue from Railway Equipment's increased by  13 per cent to Rs 53.54 crore , Revenue from construction equipment's increased by 2.48 per cent to Rs 124.49 crore and unallocated segment revenue increased by 244 per cent to Rs 2.53 crore on yearly basis. 

The total expenses decreased by 19 per cent to Rs 787.6 crore on yearly basis. The EBITDA declined by 11.88 per cent to Rs 29.53 crore, EBITDA margin expanded by 31 basis points to 3.68 per cent on yearly basis.

The Profit before interest and taxes slumped by 29.76 per cent to Rs 14 crore, the other income of the company increased by  43.68 per cent to Rs 14.77 crore on yearly basis. Finance cost reduced by 20.75 per cent to 11.15 crore y-o-y basis. The Net profit of Escorts stood at Rs 16.18 crore in Q2FY16 against a loss of (-7.86) crore in Q2FY15. 

Commenting on the results, Chairman Mr. Rajan Nanda said, “ the tractor  industry has been adversely impacted by the poor and uneven monsoon. The impact of poor monsoons has been accentuated by the cyclical in the nature of the industry. There is farm distress that is getting reflected in the overall industry recording steep drop in tractor sales though there are indications that the second half will show better results”

The FII holdings of the company increased by 75 basis points to 8.33 per cent and DII holdings of Escorts increased by 176 basis points to 3.39 per cent as on 30th September 2015. Today after the result announcement  Escorts closed by 1.76 per cent down at Rs 173.