Escorts Ltd reported a profit of Rs 22.7 crore in the quarter ending December 31, 2016, up by 11.2 per cent as against a profit of Rs 20.4 crore in the corresponding quarter in the previous fiscal. The profit reported is after one time loss from discontinued operations in respect of its Auto Products business of Rs 30.8 crore. The net profit for the nine months ending December 2016 was up by 54.4 percent at Rs 101 crore as against Rs 65.4 crore in the corresponding period last year.
Tractor sales were up by 27.4 per cent at 16,963 units during the third quarter of the current fiscal. Sales of construction equipment went up by 16.8 per cent at 815 units as against 698 units in the corresponding quarter.
Turnover for the quarter was up by 22.6 per cent to Rs 1,093 crore as against the quarter ended December 2015. Turnover for first nine months of fiscal 2017 stood at Rs 3,123.7 crore, up by 18.7 per cent as against Rs 2,632.7 crore in the nine months ended December 2015. Material cost was down by 156 bps at 68.6 per cent as against 70.2 per cent in the corresponding nine-month period.
EBIDTA from continuing operations for the quarter was up by 123.5 per cent at Rs 91.5 crore as against Rs 40.9 crore in the corresponding quarter. EBIDTA for the first nine months was up by 87.5 per cent at Rs 249.4 crore as against Rs 133 crore in the corresponding nine-month period last fiscal.
Speaking on the results, Rajan Nanda, Chairman, Escorts Ltd said, “We are on a growth trajectory. Escorts today is prepared for a continued momentum and growth across sectors. Agricultural and highways focus in the Union Budget will also have a positive impact on farm income, rural economy and infrastructure development fostering further investments and opportunities.”
Nikhil Nanda, Managing Director, Escorts Ltd, said, “Escorts today is a leaner company with smart, integrated and efficient processes and infusing cost optimisation across the board. Strategic focus on investments in expanding our product portfolio, appointing new dealers for an expanded coverage and wider service reach have resulted in better customer connect and demand. We will continue to innovate, add new product features and achieve cost efficiencies.”