Escorts’ standalone profit up 14 percent in Q3

Escorts Limited reported a standalone quarterly profit of Rs 201.5 crore in quarter ended December 2021 up by 14 percent as against a profit of  Rs176.7 crore in sequential quarter and down by 28.2 percent as against a profit of Rs 280.7 crore in the corresponding quarter.

Revenue from operations at Rs 1,957.5 crore in quarter ended December 2021 was up by 17.8 percent as against Rs 1,662.3 crore in sequential quarter and down by 3 percent as compared to Rs 2,017.4 crore in the corresponding quarter.

Revenue from operations was up by 12.1 percent at Rs 5,291.2 crore in nine months period ended December 2021 as against Rs 4,718.8 crore in the corresponding period last fiscal. Standalone net profit for the nine months period ended December 2021 at Rs 563.4 crore came down by 6.5 percent as against a profit of Rs 602.7 crore in the corresponding period last fiscal.

At consolidated level revenue from operations was up by 12 percent at Rs 5,359.9 crore in nine months period ended December 2021 as against Rs 4,785.7 crore in nine months period ended December 2020. Consolidated net profit recorded at Rs 545.6 crore in nine months period ended December 2021 was down by 9 percent as against a profit of Rs 606.2 crore in corresponding period last fiscal.

Chairman and managing director, Nikhil Nanda said, “The tractor industry has now been impacted for two consecutive quarters due to high base of last year, delayed harvest of Kharif crops owing to late monsoon rains this year which affected the rural cash flows and retail demand. Going forward, we do expect cash flows to improve with better Kharif procurement and positive outlook with good Rabi sowing. While high inflation remains a concern, we are hopeful of macro- economic factors to be in favour of agriculture to boost rural demand. We continue to invest in new product development and distribution spread to offer enhanced reach and customer experience across domestic & global markets. Multiple initiatives in agriculture and infrastructure development focus from government will be helpful in creating opportunities across our agriculture, construction & railway portfolio.”

SEGMENT WISE PERFORMANCE

Escorts Agri Machinery

For quarter ended December 2021, tractor volumes at 25,325 units went up by 20.2 percent sequentially  and were down by 19.8 percent as against 31,562 units in the corresponding quarter. Segmental revenue at Rs 1,505.6 crore in quarter ended December 2021, grew by 21.3 percent against Rs 1,240.9 crore in sequential quarter but de-grew by 8.9 percent against Rs 1,652.7 crore in corresponding quarter. EBIT margin for the segment improved by 76 bps at 15.8 percent  as compared to 15.1 percent in sequential quarter but due to steep inflation in commodities prices and lower volumes, came down by 432 bps, compared to 20.1 percent in corresponding quarter.

For nine months period of 2022-22, tractor volumes at 72,333 units went down by 2.5 percent as compared to 74,153 units in corresponding period last fiscal. Segmental revenue grew by 5.8 percent at Rs 4,158.0 crore in nine months period ended December 2021 as against Rs 3,928.4 crore in corresponding period last fiscal. Due to steep inflation in commodity prices, EBIT margin in Agri machinery segment for nine months period of 2021-22 was at 15.5 percent, lower by 321 bps as compared to 18.7 percent in the year-earlier period.

Escorts Construction Equipment

For quarter ended December 2021, Construction equipment sales volume at 1,151 machines grew by 7.2 percent as against 1,074 machines in sequential quarter but were down by 8.2 percent as against 1,254 machines in corresponding quarter. Segmental revenues at Rs 276.2 crore in quarter ending December 2021, grew by 10.8 percent as against Rs 249.2 Crore in sequential quarter and also went up by 12.9 percent as against Rs 244.7 crore in corresponding quarter. Due to steep inflation in commodities prices, EBIT margin for the segment at 2.5 percent was  down by 114 bps sequentially and also down by 509 bps against 7.5 percent in corresponding quarter last year.

For nine months period of current fiscal, construction equipment sales volumes at 2,831 machines grew by 22.6 percent  as compared to 2,309 machines in corresponding period last fiscal. Segmental revenue were up by 46.7 percent at Rs 666.2 crore in nine months period ended December 2021 as against Rs 454.1 crore in corresponding period last fiscal. EBIT margin in construction equipment segment for nine months period in current fiscal was up at 1.9 percent as compared to 1.0% in the year-earlier period.