Escorts reported a profit of Rs 160.4 crore in the year ended March 2017, up by 91.6 per cent as against a profit of Rs 83.2 crore in the previous fiscal. During the period, tractor sales were up by 24 per cent at 63,786 tractors as against 51,455 tractors in the previous fiscal. Construction equipment volume went up by 29.6 per cent at 3,315 units as against 2,555 units in the previous fiscal.
Turnover was up by 21.2 per cent to Rs 4,167.6 crore as against Rs 3,438.7 crore in the previous fiscal. Material cost was down by 90 bps at 67.0 per cent as against 67.9 per cent in the previous fiscal.
EBIDTA from continuing operations was up by 83.2 per cent at Rs 323.7 crore as against Rs 176.7 crore in the previous fiscal, while EBIDTA margin at 7.8 per cent up by 263 bps as against previous fiscal. Net profit from continuing operations was more than doubled at Rs 201.1 crore as against Rs 100.7 crore in the previous fiscal. EPS reported was at Rs 13.43 as against Rs 6.97 in the previous year.
Volume growth, increase in share of market and cost reduction initiatives contributed to increase in margins, according to the company. Increase in commodity prices has partially impacted the performance.
Speaking on the results, Rajan Nanda, Chairman, Escorts Ltd, said, “Renewed focus on farm mechanisation, agricultural infrastructure and highways reflects in our growth across businesses. Government’s vision for smart cities, doubling farmer’s income by 2022 and rural elevation policies will further accelerate economic growth and opportunities. Escorts today is well prepared for it.”
Nikhil Nanda, Managing Director, Escorts Ltd, said, “We are in a continuous process to compress cost, better our margins and strengthen customer connect. Our expanded product portfolio and technology upgrades have resulted in improved numbers, both in existing and newer geographies. Our major thrust today is to integrate global best practices, imbibe and innovate futuristic techniques and product standards which will not only foster agriculture elevation but will also provide smart and safe infrastructure.”