rural
Marketing

Escorts Kubota’s tractor sales grow 12.5% in Q2FY23

The Group including the construction equipment and railway products division today reported a net profit of ₹87.7 crores in the quarter as against a profit of ₹176.7 crores in corresponding quarter of the previous fiscal
Escorts Kubota’s tractor sales grow 12.5% in Q2FY23
Escorts Kubota’s tractor sales grow 12.5% in Q2FY23

Escorts Kubota sold 23,703 tractors in the quarter ended September 2022 went up by 12.5 per cent as against 21,073 units in the corresponding period last fiscal. The tractor segment revenue of the company was at ₹ 1,454.9 crores in the quarter ended September 2022 as against ₹ 1,257 crores in the corresponding period last fiscal. This quarter steep inflation in commodity prices, resulted in a lower EBIT margin at 8.4 per cent, as compared to 14.9 per cent in the corresponding period last fiscal.

For the first half of the current fiscal, Escort Kubota’s tractor volumes went up by 7.4 per cent at 50,500 units as compared to 47,008 units in the corresponding period last fiscal. The tractor segment revenue also went up by 14.1 per cent at ₹3,050.6 crores in the half year ended September 2022 as against ₹2,673.7 crores in the corresponding period last fiscal. EBIT margin for the first half of fiscal came at 9.5 per cent as compared to 15.2 per cent in the corresponding period last fiscal.

The Group including the construction equipment and railway products division today reported a net profit of ₹87.7 crore in the quarter as against a profit of ₹176.7 crore in the corresponding quarter of the previous fiscal, adversely impacted due to unabsorbed inflation, both in commodity and other costs and an exceptional item of ₹72.8 crore on account of impairment of investment in the joint venture Tadano Escorts India.

Revenue from operations was at ₹1,883.5 crores in the quarter as against ₹1,678.8 cores in the corresponding quarter of the previous fiscal. EBIDTA for the quarter ended September 30, 2022, came at ₹152.7 crores as against ₹226.7 crores in the corresponding quarter of the previous fiscal.

Revenue from operations was at ₹3,898.3 crores in the first half ended September 2022 as against ₹3,355.8 crores in the corresponding period last fiscal. The standalone profit before tax and before exceptional items of ₹72.8 crores is at ₹389.5 crores as against of ₹483.6 crores in the corresponding period last fiscal.

At the consolidated level revenue from operations was at ₹3,922.9 crores as against ₹3,397.7 cores in the first half year ending September 2021. Consolidated net profit recorded at ₹239.4 crore in the first half ended September 30, 2022, as against a profit of ₹351.9 crore in the corresponding period last fiscal, adversely impacted due to unabsorbed commodity price inflation coupled with an exceptional item of ₹53.1 crore on account of impairment of investment in the joint venture Tadano Escorts India. EPS reported at ₹22.14 as against ₹35.75 in the corresponding period last fiscal.

Highlighting the results, Nikhil Nanda, Chairman and Managing Director, Escorts Kubota said, “There has been a positive momentum across businesses, and we expect it to continue. Overall macroeconomic factors and farmer sentiments remain positive led by above normal monsoon and the onset of an early festive season which will favourably support agribusiness. With the increasing flow of Government investments in infrastructure development, the demand for construction equipment is likely to be good. Our broad product line in the railway business has been garnering good order booking and we expect a strong fiscal ahead. We also hope that various government actions will help in stabilising inflation to support the economy at large, propelling the country’s overall growth and development.”

Speaking on the performance, Seiji Fukuoka, Deputy Managing Director of the company said, “With strategic focus and integrated strength of Escorts Kubota Limited, various initiatives will catapult overall business growth and bring in better operational efficiency. India is a growing economy, and we operate in core sectors of growth, thus there is immense opportunity to be leveraged across businesses. There has been a positive trend and we expect it to get stronger with innovative product line ahead.”

The reviewed accounts of the second quarter and first six months ended September 30, 2022, have been approved by the Board of Directors of Escorts Kubota.

Read more: Mahindra FES records highest-ever tractor sales in a month in India; See the numbers…

RuralMarketing.in is now on Telegram. Click here to join Rural Marketing on Telegram and stay updated with the latest news and updates on rural business and the economy.

0 Shares
The Changing Face of Rural India