Escorts Q1 FY 2017-18 reports profit of Rs 62.6 crore, up 33.4%

Tractor maker Escorts has reported net profit of Rs 62.6 crore an increase of 33.4 percent for the quarter ending June 2017 as against Rs 47 crore in quarter ended June 2016 and up by 5.3 percent as against the sequential quarter.

The companies turnover was increased sequentially by 11.4 percent to Rs 1,163.2 crore for Q1 as against Rs 1,043.9 crore in quarter ended March 2017 and correspondingly up by 11 percent as against Rs 1,048.0 crore in quarter ended June 2016.

 EBIDTA for Q1 increased by 8.4 percent at Rs 97.5 crore (Q1 FY 2017 Rs 90.0) and sequentially up by 31.2 percent against Rs 74.4 crore in quarter ending March 2017.

Speaking on the results, Rajan Nanda, chairman, Escorts said, “Government’s renewed focus on farm mechanisation and smart city infrastructure has provided positive momentum to the industry, resulting in to an upward trend in market demand. Escorts will continue investing in technology, efficient distribution and product mix for enhanced agility, dynamism and customer responsiveness.”

Escorts Agri Machinery -- In Q1 2017-18, the tractor business saw sales of 17,561 units an increase of 7.3 percent compared to 16,363 for same period last year. The revenues increased correspondingly by 9.7 percent at Rs 942.1 crore in the quarter compared to Rs 859.2 crore for same period last year. EBIT margin stood at 10.8 percent for quarter ended June 2017.

 Escorts Construction Equipment -- construction equipment volumes stood at 886 units up by 20%  for the quarter, as against 739 units last year. Revenue for the quarter increased to Rs 164.6 crore as against Rs 137.1 crore in corresponding quarter last year.

 Railway Equipment Division - Escorts Railway Products have a current order book of Rs 150 crores (approx.) that will be executed in next six to seven months. The revenues for the quarter increased by 12.8 percent to Rs 65.2 crore YoY.