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Escorts’ Q2 tractor sales grows 24%, construction equipment declines 13%

With 24,441 units sold in the quarter ended September 2020, Escorts reported 23.8 percent growth as against 19,750 units in the corresponding period last fiscal

Escorts’ Q2 tractor sales grows 24%, construction equipment declines 13%

With 24,441 units in the quarter ended September 2020, one of India’s leading tractor manufacturing company, Escorts reported 23.8 percent growth as against 19,750 units in the corresponding period last fiscal. Segmental revenue went up by 32.8 percent at Rs 1,322.2 crore in quarter ended September 2020 as against Rs 995.6 crore in corresponding period last fiscal. This quarter favourable product mix, operating leverage and various cost reduction initiatives, resulted in ever highest quarterly EBIT margin at 20 percent, up by 973 bps, as compared to 10.3 percent in corresponding period last fiscal.

For first half of current fiscal, tractor volumes went up by 4.4 percent at 42,591 units as compared to 40,801 units in corresponding period last fiscal. Segmental revenue also went up by 9 percent at Rs 2,275.7 crore in half year ended September 2020 as against Rs 2,087.7 crore in corresponding period last fiscal. EBIT margin for first half of fiscal was up by 708 bps at 17.7 percent as compared to 10.6 percent in the corresponding period last fiscal.

Speaking on the results, Nikhil Nanda, Chairman and Managing Director, Escorts Group  said, “Agriculture sector has been on an unprecedented boom. Maintaining highest safety measures and working closely with our partners to work around supply chain challenges, the demand for our tractors has so far outpaced our supplies. We think the momentum in agriculture sector will continue supported by positive macro-economic factors. We also hope that supply chain challenges would subside after a month or so. We have also started witnessing some positive development in the construction and railway equipment space now and hopefully we will see a full recovery soon. In all our business segments, we are optimistic for the coming quarters.”

With 13 percent decline, the company’s construction equipment sales volume for the quarter ended September 2020 were at 821 machines as against 945 machines in corresponding period last fiscal. Segmental revenues came at Rs 156.9 crore in quarter ending September 2020 as against Rs 201.0 crore in corresponding period last fiscal. EBIT margin stood at 1.7 percent as against 2.7 percent in corresponding period last fiscal.

For first half of current fiscal, construction equipment volumes were at 1,055 units as compared to 2,012 units in corresponding period last fiscal. Segmental revenue came at Rs 209.4 crore in half year ended September 2020 as against  Rs 413.2 crore in corresponding period last fiscal. EBIT margin for first half of fiscal were negative 6.7 percent as against 2.6 percent in the corresponding period last fiscal.

Escorts reported highest ever standalone quarterly profit of Rs 229.9 crore in quarter ended September 30, 2020, that more than doubled  against a profit of Rs 104.6 crore in the corresponding period last year. Revenue from operations at Rs 1,639.7 crore in quarter ended September 2020 went up by 23.9 percent as against Rs 1,323.9 crore in the corresponding period last year. EPS reported at Rs 17.72 was up by 102.5 percent as against Rs 8.75 in corresponding quarter and Rs 7.71 in sequential quarter.

The standalone net profit for the first half year ending September 2020 at Rs 322.1 crore was up by 67.7 percent as against a profit of Rs 192.1 crore in the corresponding period last fiscal. Revenue from operations was at Rs  2,701.3 crore in first half ended September 2020 as against Rs  2,746.8 crore in the corresponding period last fiscal.

At consolidated level revenue from operations was at Rs 2,743.4 crore as against Rs 2,774.2 core in first half year ending September 2020. Consolidated net profit recorded at Rs 319.8 crore in first half  ended September 30, 2020, was up by 69 percent, as against a profit of Rs 189.2 crore in corresponding period last fiscal.

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