Escorts group shared the Q3 results which are quite positive. Company earned a growth of 305 percent in past quarter (Q3 FY 2017-18) with a profit of 92 crores. The net profit for the same period last year was at 22.7 crores.
9 month profit stood at 232 crores against 101 crores for the same period last year.
Speaking on the results, Chairman Mr. Rajan Nanda said, “Positive macro-Economic indicators & govt focus on agriculture and infrastructure is driving a stronger market demand. Hopefully, the upcoming union budget will further support the respective sectors and create more segment opportunities. We will continue to invest in technology, channel and product mix for enhanced business productivity.”
Says Mr. Nikhil Nanda, Managing Director, “Escorts will continue to mechanise farms and bring global standards to urban infrastructure with a very competitive and innovative product portfolio. We are investing extensively in R&D and creating a roadmap of strategic partnerships to bring in the best in class and globally benchmarked technology solutions to tap the emerging opportunities across agriculture, infrastructure and railway segments both for domestic and global demand.”
SEGMENT WISE PERFORMANCE
Escorts Agri Machinery
Tractor sales were up by 1 1.6% at 18,930 tractors during the third quarter ofthe current fiscal as against . 16,963 tractors in the corresponding quarter. This was accompanied by significant improvement in EBIT margins which was up 421 bps at 14.6% as compared to 10.4% in the corresponding period.
Escorts Construction Equipment
Sales of construction equipment went up by 33.4% at 1,087 units during third quarter of current fiscal as against 815 units in the corresponding quarter. EBIT margin turn positive at 2.2% as against negative 2 .4% in last year same quarter.
Railway Products Division
Revenue for the second quarter up by 24.2% at 72 crore as against 58 crore in the corresponding qiiarter EBIT margin up by 202 bps at 13.0% as that of 1 1.0% in last year same quarter. Order book at end of December’17 is around 330 crore and will be executed by next fiscal.