On a standalone basis, Escorts reported net profit of Rs 185.2 crore in quarter ended 30 June 2021, up by 101% from Rs 92.2 crore in corresponding quarter of the previous fiscal.

Revenue from operations rose by 57.4% to Rs 1,671.5 crore in Q1 FY22 over Q1 FY21. EBIDTA improved by 95% to Rs 233.2 crore in Q1 FY22 from Rs 119.6 crore in Q1 FY21.

With regard to the Escorts Agri Machinery (EAM) division, the company said that the tractor sales volume at 25,935 tractors for the quarter ended June 2021 went up by 42.9% as against 18,150 tractors in the corresponding period last fiscal. Segmental revenues increased by 48% to Rs 1,411.4 crore in quarter ending June 2021 compared with the corresponding period last fiscal.

This quarter, despite commodity price inflation, with various cost reduction initiatives and operating leverage, the segment's EBIT margins improved by 112 bps to 15.6% in quarter ended June 2021 as against 14.5 % in corresponding period last fiscal.

With regard to the Escorts Construction Equipment (ECE) division, the company said that the construction equipment sales volume at 606 machines for the quarter ended June 2021 up by 159% as against 234 machines in the corresponding period last fiscal. Segmental revenues rose by 168.3% to Rs 140.8 crore in Q1 FY22 over Q1 FY21.

Escorts said that going forward, with improved funding availability and government thrust on infrastructure projects, demand is expected to recover to its full potential from Oct'2 l onwards post the monsoon season.

The company's Railway Equipment Division (RED) recorded revenues of Rs 119.4 crore in the quarter ending June 2021, up by 117.5% from Rs 54.9 crore in the corresponding quarter last year.

Escorts said that Indian railways is still not running its full operations, due to unprecedented COVID-19 pandemic and have cut down their annual production rate, affecting fresh order tendering and order inflow. Order book for the division, at end of June 2021, was more than Rs 300 crore. Going forward, with Government safety measures and vaccination drive picking up at fast pace, the company expects that tendering process will get back to pre-COVID level with in current fiscal.

Nikhil Nanda, chairman and managing director, said, “Unlocking has helped in building demand, easing transport & logistics and improved supply chain across farming community to create a positive industry momentum and we certainly hope that with sustained government efforts, tractor and Agri equipment industry and construction equipment industry will be back on a growth path.

While we are witnessing some encouraging developments in the railway equipment space too, it may take some time to come out of the impact of the current environment and regain the pre-COVID business levels.”

The Escorts Group is an Indian engineering company that operates in the sectors of agri-machinery, construction and material handling equipment, and railway equipment.

The scrip shed 0.36% to currently trade at Rs 1229.60 on the BSE.

Powered by Capital Market - Live News