With Decent Growth in Tractor Sales Escorts Net Up By 62%

Agriculture and industrial machine and equipment manufacturer Escorts has shown a fabulous growth in its agri. business segment during Q3 (company’s Q5) to post a net profit growth of 62% to Rs 46 crore as against Rs 28 crore earned last year. During this period the topline of the company reached Rs 1160 crore as against Rs 1028 crore in corresponding period last year, showing a spurt by 12.8%. Interestingly to align its balance sheet date with April-March fiscal year, company has extending its financial year by six months. 

During the December quarter company witnessed a good amount of tractor sales volume that has really boosted company’s finances. Also during the last 15 months tractor sales grossed at 85277 units as against 77779 units sold during corresponding period of 15 months last year. During the December quarter the company sold 19047 tractors, a growth of 28%. Company is also focussed on reducing the debt in its balance sheet and it has shown results as finance cost has come down from Rs 21.4 crore to Rs 15.5 crore during December quarter. 

Segment wise revenue clearly shows that company’s agri. machinery business is greatly contributing to both topline and bottomline as it clocked 972 crore from this segment in Q5 as against Rs 846 crore achieved last year, while its auto ancillary product business remained a laggard with a revenue of  Rs 29 crore as against Rs 37 crore last year. Construction equipment segment also revealed a jump as the revenue crossed Rs 130 crore mark as against Rs 129 crore achieved during corresponding quarter last year. Interestingly on the bottomline front only agri. machinery and railway equipment segment is earning profits for the company at Rs 92 crore and Rs 1.2 core respectively while auto ancillary product and construction equipment segment clocked a loss of Rs 9.4 crore and Rs 2.63 crore respectively during the quarter. This seems to be a big concern for the company going forward.