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Profit for Q1 grows to 62.6 crore
Q1 EBIDTA up 8.4% at 97.5 crore
Tractor volumes up 7.3% to 17,561 units

New Delhi, July 28, 2017: Escorts Limited today reported an increase in net profit by 33.4% at 62.6 crore in the quarter ending June 2017 against 47 crore in quarter ended June 2016 and up by 5.3% as against the sequential quarter.

Q1 FY 2017-18 HIGHLIGHTS

  • Turnover increased by 11% to 1,163.2 crore correspondingly
  • Tractor volumes at 17,561 units, with growth of 7.3% correspondingly
  • Construction Equipment volume correspondingly up by 20% at 886
  • EBIDTA margins sequentially up by 126 bps
  • PAT reported at 62.6 crore up by 33.4% correspondingly
  • EPS at 5.24 as against 3.94 last year.

Turnover increased sequentially by 11.4% to 1,163.2 crore in quarter ending June 2017 against 1,043.9 crore in quarter ended March 2017 and correspondingly up by 11% against 1,048.0 crore in quarter ended June 2016.

EBIDTA for the quarter correspondingly up by 8.4% at 97.5 crore against 90.0 crore in quarter ending June 2016 and sequentially up by 31.2% against 74.4 crore in quarter ending March 2017. EPS reported at 5.24 as against 3.94 in the previous year.

Speaking on the results, Chairman Mr. Rajan Nanda 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.

Says Mr. Nikhil Nanda, Managing Director, “Escorts today is equipped with future readiness to tap the emerging opportunities across agriculture, infrastructure and railway segments. Our focus on enhanced customer reach and technology upgrades will build our capability and competence to cater to growing domestic and global demand.


SEGMENT WISE PERFORMANCE

Escorts Agri Machinery

Tractor volumes in the quarter ended June 2017 correspondingly up by 7.3% to 17,561 tractors against 16,363 tractors in quarter ended June 2016. The segment revenues increased correspondingly by 9.7% at 942.1 crore in quarter ending June 2017 against 859.2 crore in quarter ended June 2016, EBIT margin stood at 10.8% for quarter ended June 2017.

Escorts Construction Equipment

Construction Equipment volumes up by 20% stood at 886 units in quarter ending June 2017 against 739 units in quarter ending June 2016. Revenue for the quarter increased to 164.6 crore as against 137.1 crore in corresponding quarter ending June 2016.

Railway Equipment Division

Escorts Railway Products has a current order book is 150 crores (approx.) which will stand executed in next 6 to 7 months. The revenues for the quarter increased by 12.8% to 65.2 crore against the corresponding quarter ending June 2016.

The reviewed accounts of the quarter ending June 2017 has been approved by the Board of Escorts Limited.


For further information, kindly contact:

Sharad Gupta
Group Head Corporate Brand Communications Escorts Ltd.
sharad.gupta@escorts.co.in

Prateek Singhal
Investor Relations
Contact No: +91 129 2564921
investorrelation@escorts.co.in
prateek.singhal@escorts.co.in




Tractor volumes up by 24% at 63,786 units
Construction Equipment volumes up by 29.8% at 3,315 units
EBIDTA up by 83.2% at ` 323.7 crore
Profit from continued operations doubled at ` 201 crore
Board recommends a dividend of 15%

New Delhi, May 29, 2017: Escorts Limited today reported a profit of ` 160.4 crore in year ended March’17 up by 91.6 percent as against a profit of ` 83.2 crore in the previous fiscal.

In year ended March’17, Tractor sales were up by 24 percent at 63,786 tractors as against 51,455 tractors in the previous fiscal. Construction equipment volume went up by 29.6 percent at 3,315 units as against 2,555 units in the previous fiscal.

Turnover up by 21.2 percent to ` 4,167.6 crore as against ` 3,438.7 crore in the previous fiscal. Material cost was down by 90 bps at 67.0 percent as against 67.9 percent in the previous fiscal.

HIGHLIGHTS Q4FY17

  • Tractor volumes up by 26.7% at 14,978
  • Construction equipment volume up by 40.7% at 1,037
  • Turnover up 29.5% at ` 1,043.9 crore.
  • EBIDTA up by 70% at ` 74.4 crore.
  • EBIDTA margins up by 169 bps
  • EPS at ` 4.95 as against ` 1.75 last year.

EBIDTA from continuing operations up by 83.2 percent at ` 323.7 crore as against ` 176.7 crore in the previous fiscal, EBIDTA margin at 7.8 percent up by 263 bps as against previous fiscal. Net profit from continuing operations more than doubled at ` 201.1 crore as against ` 100.7 crore in the previous fiscal. EPS reported at ` 13.43 as against ` 6.97 in the previous year.

Volume growth, increase in share of market and cost reduction initiatives contributed to increase in margins. Increase in commodity prices has partially impacted the performance.

Speaking on the results, Chairman Mr. Rajan Nanda said, “Renewed focus on Farm Mechanisation, agricultural infrastructure & highways reflects in our growth across businesses. Government’s vision for smart cities, doubling farmer’s income by 2022 & rural elevation policies will further accelerate economic growth and opportunities. Escorts today is well prepared for it.”

According to Mr. Nikhil Nanda, Managing Director, Escorts Ltd, “We are in a continuous process to compress cost, better our margins & 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.”

SEGMENT WISE PERFORMANCE

Escorts Agri Machinery

Tractor sales at 63,786 tractors up by 24% as against 51,455 tractors in the previous year. EBIT margins up by 212 bps at 10.3% as against 8.2% in the previous fiscal. For fourth quarter ended March’17 tractor volumes at 14,978 up by 26.7% and EBIT margin at 10.1% up by 62 bps as against the previous year same period.

Escorts Construction Equipment

Construction equipment sales at 3,315 units up by 29.8% as against 2,555 units in the previous year. Positive swing of 291 bps in EBIT margins as against previous fiscal. For fourth quarter ended March’17 volumes at 1,037 up by 40.7% and EBIT margin at 2.1% up by 543 bps as against the previous year same period.

Railway Equipment Division

Railway division sales up by 6.5% at ` 242.5 crore as against ` 227.8 crore in the previous year. EBIT margins up by 280 bps at 12.7% as against 9.9% in the previous fiscal. For fourth quarter ended March’17 sales at ` 66.6 crore up by 17.2% and EBIT margin at 10.8% up by 554 bps as against the previous year same period. The current order book is around ` 155 crore and will be executed in the next 6-7 months.

The audited accounts of the 12 months ended March 2017 has been approved by the Board of Directors of Escorts Limited.

For further information kindly contact:


Sharad Gupta
Group Head Corporate Brand Communications Escorts Ltd.
sharad.gupta@escorts.co.in

Prateek Singhal
Investor Relations
Contact No: +91 129 2564921
investorrelation@escorts.co.in
prateek.singhal@escorts.co.in




Escorts looks at Human Resource for continued growth

Inducts Amanppreet Singh Bhatia as new Group HR Head

New Delhi, April 20, 2017 : Escorts Ltd., leading Agriculture & Infrastructure Solutions manufacturer, has appointed Amanppreet Singh Bhatia as the new Group HR Head.

Amanppreet has more than 25 years of experience across commercial vehicle & engineering solutions, consumer durable and FMCG space. At Escorts, he will focus on organizational transformation and Human Resource strategic roadmap to build a strong employer brand.

About Escorts Limited

The ESCORTS GROUP is among India's leading engineering conglomerates operating in high growth sectors of Agri Machinery, Material Handling & Construction Equipment and Railway Equipment. The Group has earned the trust of over 5 Million customers by way of product and process innovations over six decades of its existence. Escorts endeavors to transform lives in rural and urban India by leading the revolution in agriculture mechanization, modernization of automotive & railway technology and transformation of Indian construction.

For further information kindly contact:


Sharad Gupta
Group Head, Corporate Communications, Escorts Limited
sharad.gupta@escorts.co.in

Rajat Gupta
Torque Communications Pvt ltd
9953500503
rajat@torquemail.com




New Delhi, November 9, 2016 : Escorts Ltd, India’s leading tractor manufacturer, today announced the launch of new range of FT 6080 Pro and FT 6090 Pro Farmtrac tractors in 80 & 90 HP category simultaneously in Italy and Mexico at EIMA, International Exposition of Machinery for Agriculture and Gardening, Bologna, and at Expo Agroalimentaria Guanajuato, Irapuato, respectively. Aligned to Farmtrac pedigree of classic, simple and efficient farm machines, these new Escorts tractors are technology marvel with value for money for farmers worldwide.

The Farmtrac tractors conform to stringent European norms in every aspect with the new CRDi engine and transmission designs, most advanced in their category. Custom manufactured for world farmers, Farmtrac FT 6080 Pro & FT 6090 Pro tractors are cost efficient high end machines with state of art technology. These tractors have the edge of unchallenged fuel economy backed by zero RPM drop in engine, lifting capacity upto 3000 kg, cold start ability at -15˚ C and special features for paddy cultivation.

Escorts Ltd offers a strong mix of Indian engineering and R&D excellence coupled with world class designs for agri machinery markets worldwide. It leverages its six decades plus experience in farm mechanization in India to manufacture tractors in Poland for the world farmers for more than 15 years now and has been successfully catering to farmers across 15 countries within Europe and 54 countries globally. With its new “Global Transformation Vision 2020”, Escorts is focussing on several new markets in Europe, Latin and North America, Africa and ASEAN countries and bringing them the best of technology at an affordable price.

Speaking on the new launch, Ravi Menon, Chief Executive Officer, Escorts Agri Machinery, said, “Escorts Ltd has always aimed at providing farmers with advanced agricultural equipment, which have the best value for money. With our new Global Transformation Vision 2020, we wish to change the way farmers globally, perceive farming, by producing tractors with value-proposition of fuel efficiency and cost-effectiveness.”

Rajiv Wahi, Head – International Business, Escorts Agri Machinery, elaborated further saying, “Our new range of Farmtrac tractors are positioned to fill the often perceived market gap in the category. We have also strengthened our global networks to effectively cater to farmer demands in newer geographies. Our Farmtrac has been well recognized as an international brand and we are proud to take India’s technological excellence to the world.”

About Escorts Limited & Farmtrac Europe

The ESCORTS GROUP is among India's leading engineering conglomerates operating in high growth sectors of Agri Machinery, Material Handling & Construction Equipment, Railway Equipment and Auto Components. The Group has earned the trust of over five million customers by way of product and process innovations over six decades of its existence. Escorts endeavors to transform lives in rural and urban India by leading the revolution in agriculture mechanization, modernization of automotive & railway technology and transformation of Indian construction.

The Farmtrac Poland plant is a 100% subsidiary of Escorts with installed manufacturing capacity of 3000 tractors per annum. The products are both designed and developed in this state of the art unit catering to the demand of 15 countries of European Union. Meeting all European standards, its current offering includes 20 different types and varieties of tractor. With reputation for durability, Farmtrac tractors offer an unbeatable value of its product which is demonstrated by the use of the best components in the world assembled by highly-skilled engineers.

For further information, please contact:


ESCORTS LIMITED

TORQUE COMMUNICATIONS PVT LTD.

Sharad Gupta
Group Head, Corporate Brand Communications
Sharad.gupta@escorts.co.in

Rajat Gupta
Torque Communications Pvt ltd
9953500503
rajat@torquemail.com




New Delhi, October 18, 2016: Escorts Limited today announced the appointment of Ajay Mandahr as the new Chief Executive Officer of its Construction Equipment Business. Mr Mandahr brings 26 years of experience in construction equipment, material handling and manufacturing industry.

Announcing the appointment, Mr. Rajan Nanda, Chairman of Escorts Limited said, "This is a key appointment at a time when the construction industry is highly optimistic. The country is in a crucial phase of development where numerous projects are running in different regions, propelling the demand for construction equipment. Ajay’s strategic thinking and relevant experience will bring in a strong drive to our construction equipment portfolio.”

Mr. Nikhil Nanda, MD of Escorts Limited said, Ajay brings valuable know-how to Escorts. His domain experience will be important for driving the Group’s strategic thrust in expansion of markets, diversification of product portfolio, strengthening service excellence, sustaining leadership in the existing and new categories and grow our presence globally.

About Escorts Limited

The ESCORTS GROUP is among India's leading engineering conglomerates operating in high growth sectors of Agri Machinery, Material Handling & Construction Equipment and Railway Equipment. The Group has earned the trust of over 5 Million customers by way of product and process innovations over six decades of its existence. Escorts endeavors to transform lives in rural and urban India by leading the revolution in agriculture mechanization, modernization of railway technology and transformation of Indian construction.

For further information, please contact:


ESCORTS LIMITED

TORQUE COMMUNICATIONS PVT LTD.

Sharad Gupta
Group Head, Corporate Brand Communications
Sharad.gupta@escorts.co.in

Rajat Gupta
Torque Communications Pvt ltd
9953500503/ rajat@torquemail.com




New Delhi, 11 August, 2016: Escorts Ltd today announced the divestment of its OEM & Export business of Auto Product division to Badve Engineering Ltd., Pune in an all cash deal as a part of the planned strategic reorientation of the business to focus on core verticals in the Agri-Machinery, Construction equipment and Railway equipment.

The Auto Products business comprises an extensive product basket catering to OEMs and replacement market in India and overseas markets for all vehicle categories including motorcycles, scooters, passenger cars, commercial vehicles, and multi-utility vehicles.

According to Mr. Dipankar Ghosh, CEO, Escorts Auto Products & Escorts Railways Products, “We believe that the transfer of OEM and Export business to Badve Engineering Ltd will help us to focus on our core areas. We are delighted that Badve Engineering Ltd has stepped in to take the business forward.”

Speaking on the acquisition, Company Spokesperson Mr. Shrikant Badve, Managing Director Badve Engineering Ltd., said, “We are delighted to have acquired a business that has a good market standing and the versatility to produce an extensive range of auto components for various applications.”

ICICI Securities acted as transaction advisor for the deal.

About Escorts Group:

The ESCORTS GROUP is among India's leading engineering conglomerates operating in high growth sectors of Agri Machinery, Construction Equipment, Railway Equipment and Auto Components. The Group has earned the trust of over 5 Million customers by way of product and process innovations over six decades of its existence. Escorts endeavors to transform lives in rural and urban India by leading the revolution in agriculture mechanization, modernization of automotive & railway technology and transformation of Indian construction.

About Badve Group:

Badve Group is a leading automotive equipment supplier in India with manufacturing facilities spread all over India and catering to the 2W, 3W, 4W and consumer durable segments with a very strong focus on forging client relationships with large OEMs.

For further information kindly contact

  • Sharad Gupta
    Group Head Corporate Brand Communications
    Escorts Ltd.
    Email ID: sharad.gupta@escorts.co.in
  • Escorts Limited
    Registered Office:15/5, Mathura Road,
    Faridabad -121003, India
    Contact No: +91 129-2250222
    Fax No: +91 129-2250009
    Email ID: escortsgroup@escorts.co.in

Corporate Identification Number L74899HR1944PLC039088




  • Profit for Q1 grows to Rs. 47 crore
  • Q1 EBIDTA up 52.4% at Rs.87.8 crore
  • Tractor volumes up 10% to 16,363 units
Q1 FY 2016-17 HIGHLIGHTS

    PAT at Rs 47 crore against Rs 35.2 crore in corresponding quarter

    Turnover increased by 9.3% to Rs 1051.4 crore against corresponding quarter

    Tractor volumes at 16,363 units, with 38% sequential and 10% corresponding growth

    Construction Equipment volume correspondingly up by 45% at 739

    Material cost down by 245 bps against the corresponding quarter

    New Delhi, July 28, 2016: Escorts Limited today reported an increase in net profit by 33.5% at Rs 47 crore in the quarter ending June 2016 against Rs 35.2 crore in quarter ended June 2015.

    Escorts turnover increased correspondingly by 9.3% to Rs 1051.4 crore in quarter ending June 2016 against Rs 961.4 crore in quarter ended June 2015.

    EBIDTA for the first quarter of this fiscal year is correspondingly up by 52.4% at Rs 87.8 crore against Rs 57.6 crore in quarter ending June 2015. Material cost is down by 245 bps at 67.9% against 70.3% in corresponding quarter ending June 2015.

    Consequently, there is a significant improvement in segment margins with Escorts Agri Machinery showing a corresponding positive increase of 203 bps at 11.3% in quarter ending June 2016 as compared 9.2% in quarter ending June 2015.

    Tractor volumes are correspondingly up by 10% to 16,363 tractors in quarter ending June 2016. Construction Equipment volumes during this quarter showed a 45% increase to 739 units against the corresponding quarter ending June 2015, resulting in positive swing of 494 bps at EBIT margin in ECE segment. Escorts Railway Products segment margin (EBIT) up by 462 bps at 17.3% in quarter ending June 2016 against 12.7% in quarter ending June 2015.

    Speaking on the results, Chairman Mr. Rajan Nanda said, “The last quarter has shown a welcome upward trend in market demand. Sustaining it by the government taking advantage of a good monsoon would be important for the revival of the overall farm sector. The government has to provide a big impetus to farm mechanization, crop insurance and agriculture infrastructure. The construction industry too is showing signs of improvement and railways are on a healthy track. I am confident that if the economy continues to strengthen across sectors, our investments in better product mix, increased coverage, enhanced efficiencies and product innovation will deliver even better results.”

    Says Mr. Nikhil Nanda, Managing Director, “The Escorts strategy of superior products, strengthened marketing and brand initiatives, focus on cost efficiencies and focus on customer relationships has resulted in not only improvement in our core markets but also greater share in newer markets where we had fledgling presence. The introduction of best-in-class products in all segments is showing results and acquiring new customers. Given the cost compression strategies implemented in the recent past, an upturn in revenue gives a boost to our profitability. We will continue to focus on products that are superior and service that exceeds expectations.”

    SEGMENT WISE PERFORMANCE
    Escorts Agri Machinery

    Tractor volumes in the quarter ended June 2016 went up sequentially by 38.4% to 16,363 tractors against 11,823 tractors in quarter ended March 2016 and was correspondingly up by 10% against 14,875 tractors in quarter ended June 2015. The segment revenues increased correspondingly by 8.2% at Rs 858.3 crore in quarter ending June 2016 against Rs 793 crore in quarter ended June 2015.

    Escorts Construction Equipment

    Construction Equipment volumes stood at 739 units in quarter ending June 2016 against 508 units in quarter ending June 2015, showing a 45% corresponding growth. Revenue for the quarter up by 31.7% correspondingly to Rs 124.8 crore as against Rs 94.7 crore in corresponding quarter ending June 2015.

    Railway Equipment Division

    Escorts Railway Products has a current order book of Rs 100 crores (approx.) which will stand executed in next 7 to 8 months. The revenues for the quarter increased by 11.9% to Rs 54.5 crore against the corresponding quarter ending June 2015.

    Escorts Auto Products

    Escorts Auto Products recorded a revenue of Rs 20.1 crore for the first quarter of fiscal 2016 as against Rs 28.5 crore in the corresponding quarter ending June 2015.

    The reviewed accounts of the quarter ending June 2016 has been approved by the Board of Escorts Limited.

    For further information kindly contact:




  • Announces global ambition with launch of 13 new tractors under flagship brands Farmtrac, Powertrac, and Euroline Series
  • 37 global partners of Escorts join in for launch during International Day celebrations

Escorts Limited, one of India’s leading tractor manufacturers, today unveiled their global ambitions with launch of 13 new tractors in 12HP to 110HP range under flagship brands Farmtrac, Powertrac, and Euroline Series to cater specifically to the world market. This heralds the foray of the engineering conglomerate in newer and extreme horse power range of 12HP to 110HP to address global competition in overseas markets by designing, developing and making in India.

Escorts also announced a new strategic approach of 'Global Transformation Vision 2020' to strengthen its market share across the continents. Thirty Seven partners of Escorts from all across the world came together to affirm their association with Escorts for the success of this new strategic approach and the new range of products in an occasion marked as "International Day". The company had recently carved out a separate International Business division to cater specifically to requirements of global customers.

Speaking on the occasion the Chief Executive Officer, Escorts Agri Machinery, Mr Ravi Menon said, "Escorts Group has been a witness to the transforming agricultural ecosystem since seven decades and understands the ever evolving needs of the farmers worldwide. We are committed to taking India's best to the world and launch of these new tractors are a manifestation of our belief in the Make In India mission. We have once again delivered on our promise of innovation and creating value with bouquet of machines customized to farmer needs worldwide in 12 to 110 HP range. Escorts group already has a strong foothold across continents and our new transformation vision will further enable us to strengthen our leadership across North Africa & South Africa, America, Europe, and the ASEAN region."

Apart from being aesthetically superior, fuel efficient, and powerful, Escorts’ new range of tractors come with CRDi engines that are in compliance with the International emission norms. Making In India, the world class products, Escorts has innovated once again to limit the user drudgery and offered comfort, power and style for tractor driver with state-of-art features.

Rajiv Wahi, Head – International Business, Escorts Agri Machinery said, "Escorts has embarked on an ambitious global expansion spree with a clear five year roadmap under which it aims to be a major global player in terms of size, product portfolio and a trusted global brand. We are glad to complement announcement of our 'Global Transformation Vision 2020' with launch of a new range of tractors. Every channel partner who attended the International Day is excited and fully committed. Our global network is strengthened with 5 new channel partners signing up their association to introduce Escorts product line in their geographies. Indian tractors will now equip farmers with latest technology across South America, Brazil, South Africa, Turkey, Thailand, Europe, United States, and the ASEAN region."

For the Editor:

The ESCORTS GROUP is among India's leading engineering conglomerates operating in high growth sectors of Agri Machinery, Material Handling & Construction Equipment, Railway Equipment and Auto Components. The Group has earned the trust of over 5 Million customers by way of product and process innovations over six decades of its existence. Escorts endeavours to transform lives in rural and urban India by leading the revolution in agriculture mechanization, modernization of automotive & railway technology and transformation of Indian construction.

For further information, please contact:

ESCORTS LIMITED

TORQUE COMMUNICATIONS PVT LTD.

Sharad Gupta
Group Head, Corporate Brand Communications
Sharad.gupta@escorts.co.in

Rajat Gupta
Torque Communications Pvt ltd
9953500503/ rajat@torquemail.com




  • Profit for Q4 up 28.7% YoY at Rs. 16.4 crore
  • Q4 EBIDTA up 76.2% at Rs. 38.8 crore
  • Tractor volumes at 51,455 units in FY 2016

New Delhi, May 25, 2016: Escorts Limited today reported an increase in net profit of 19.6 % at Rs. 89.4 crore in the fiscal year March 31, 2016 as against Rs. 74.7 crore in the previous fiscal. For the quarter ending March 2016, net profit was up by 28.7 % at Rs. 16.4 crore as against Rs. 12.8 crore in the corresponding quarter in the previous fiscal.

EBIDTA for the fourth quarter of the 2015-16 fiscal was up at Rs. 38.8 crore by 76.2% against Rs. 22 crore in the corresponding quarter ended March 2015 and up by 13.7% as against Rs.. 34.1 crore in the preceding quarter ended December 2015. Profit before tax was up by 49.2 % in the quarter ended March 2016 at Rs. 15.5 crore as against Rs. 10.4 crore in the corresponding quarter of the last fiscal.

FY 2016 HIGHLIGHTS
  • PAT at Rs. 89.4 against Rs. 74.7 crore in FY 2015
  • PBT at Rs. 91.9 crore up by 34.6% from Rs. 68.3 crore
  • Tractor volumes at 51,455
  • Tractor domestic market share at 10.3%.
  • Material cost down by 252 bps at 68.9%
  • EAM segment margin (EBIT) up by 95 bps

There was an improvement in segment margins with Escorts Agri Machinery showing a positive increase of 504 bps at 9.7% over the corresponding quarter (at 4.6%) as a result of better product mix and cost reduction. Similarly, Escorts Construction Equipment showed a positive swing of 25 bps sequentially.

In the fourth quarter of FY 2016, tractor volumes were up by 7.1 % at 11,823 tractors as against 11,036 tractors in the corresponding quarter. Construction Equipment volumes during the quarter were marginally lower by 0.4% at 737 units as against the corresponding quarter (740 units) but up by 5.6 % over the preceding quarter (at 698 units) ended December 2015.

For the quarter ending March 2016, turnover stood at Rs. 804.7 crore as against Rs. 817.7 crore in the corresponding quarter. Turnover for the year stood at Rs. 3,472.2 crore as against Rs. 3,985.8 crore.

Material costs were down by 143 bps at 69.4% in the fourth quarter of FY 2016 as against 70.9% in the corresponding quarter of the previous fiscal. In FY 2016, material costs were down by 252 bps at 68.9% as against 71.5% in the fiscal ended March 2015.

Speaking on the results, Chairman Mr. Rajan Nanda said, “The tractor industry has now been impacted for almost seven consecutive quarters by adverse weather conditions. While the forecast for the forthcoming monsoons have been optimistic, the need for concerted action across multiple fronts in the farm sector has become urgent. Focus on farm mechanization, effective crop insurance and agriculture infrastructure is critical to dealing with farm distress. At Escorts, we have focused on improving margins through better product mix and cost reduction and the results are evident. We have improved our profitability and are confident that the company is well poised to take advantage of the inevitable improvement in both the farm and construction sector.”

Q4 HIGHLIGHTS
  • PAT at Rs. 16.4 crore, up by 28.7% from Rs. 12.8 crore in Q4 2015
  • PBT at Rs. 15.5 crore, up by 49.2 % from Rs. 10.4 crore in Q4 2015
  • EBIDTA at Rs. 38.8 crore up by 76.2% against Rs. 22 crore in Q4 2015
  • Tractor Volumes at 11,823 tractors, up by 7.1% against 11,036 tractors in Q4 2015
  • Turnover at Rs. 804.7 Cr.
  • Material cost down by 143 bps at 69.4% from corresponding quarter in FY 2015
  • Segment margin for EAM at 9.7% up by 504 bps against 4.6% in Q4 2015

Says Mr. Nikhil Nanda, Managing Director, Escorts Ltd, “Escorts today is a leaner, fitter company where we have created efficiencies through integration of production processes and cut costs across the board. However, the improvement in profits is as much an outcome of the investments we have made in expanding our product portfolio, appointing new dealers for an expanded channel coverage. Escorts Agri Machinery, for instance, has improved its domestic market share to 11.1% from 9.48% in the preceding quarter. In the new fiscal, we will continue to innovate, add new product features to meet applications demand and drive greater cost efficiencies.”

SEGMENT WISE PERFORMANCE

Escorts Agri Machinery

Tractor volumes in the fiscal year ended March 2016 stood at 51,455 units as against 59,779 units in the previous fiscal. The fourth quarter of FY 2016 saw sales increase of 7.1% to 11,823 tractors against 11,036 units in the corresponding quarter of the last fiscal. Revenues for the fiscal year stood at Rs. 2,739.4 crore as against Rs. 3,204.3 Cr. in the previous fiscal. On a quarterly basis, the fourth quarter of FY 2016 saw revenues up by 0.71% at Rs. 613.7 crore in the quarter ended March 2016 as against Rs. 609.4 crore in the corresponding quarter of the previous fiscal. Escorts Agri Machinery improved its domestic market share to 11.1% at the end of March 2016 as against 11.05% in the corresponding quarter (March 2015) and 9.48% in the preceding quarter ended December 2015.

Escorts Construction Equipment

Construction Equipment volumes stood at 2,555 units in FY 2016 as against 3,007 units in the previous fiscal. In the fourth quarter of the fiscal, sales went up to 737 units from 698 units in the preceding quarter ended December 2015. Revenue for the year stood at Rs. 455.6 crore as against Rs. 511.4 crore. Revenue for the fourth quarter ended March 2016 stood at Rs. 121.6 crore as against Rs. 118.9 crore in the preceding quarter ended December 2015.

Railway Equipment Division

Railway Equipment Division recorded a rise in income for the second successive year with revenues increasing by 11.98% to Rs. 205.4 crore from Rs. 183.5 crore in the previous fiscal. Segment margins (EBIT) improved to 11%, up by 147 bps, as against 9.6% in the previous fiscal. The current order book is of approximately Rs. 55 crore which will be executed in the next 3-4 months of FY17.

Escorts Auto Products

Escorts Auto Products recorded revenue of Rs. 92.4 crore for FY 2016 as against Rs. 103.4 crore in the preceding fiscal. The division recorded revenues of Rs. 23.4 crore in the fourth quarter of the fiscal, up from Rs. 16.5 crore in the preceding quarter ended December 2015.

The audited accounts of the 12 months ending March 2016 has been approved by the Board of Escorts Limited.

For further information kindly contact:

Sharad Gupta
Group Head Corporate Brand Communication
Escorts Limited
Email ID: sharad.gupta@escorts.co.in

Investor Relations
Escorts Limited
Contact No: +91 129 2564921
Email ID: investorrelation@escorts.co.in

Rajat Gupta
Rajat Gupta
Email ID: rajat@torquemail.com
Contact No: +91 9953500503




Inducts Ravi Menon as CEO of Agri Machinery business

S Sridhar to lead Construction Equipment business

New Delhi, April 7, 2016Escorts Ltd., the global Agri Machinery and Construction Equipment manufacturer, has appointed Mr Ravi A Menon as Chief Executive Officer of its Agri Machinery business. Mr Menon takes over from Mr S Sridhar who would now move to head Escorts Construction Equipment (ECE).

Mr Menon has been credited for shaping the development cultures of some of the most influential and valuable companies and brings over three decades of experience in marketing, sales, branding, international markets and production from industries as varied as tractor, cement and industrial products. Mr Sridhar will focus on transforming and building organizational energy at ECE to leverage emerging business opportunities.

According to Mr. Rajan Nanda, Chairman & Managing Director, Escorts Limited“We have strengthened our leadership team at a time when Escorts has created a strong base for growth across its businesses. At Escorts, we have focused on creating synergies between the businesses. Mr Menon’s induction brings cross-industry experience and a strong understanding of the different aspects of enterprises and Mr Sridhar’s movement to ECE would help further strengthen the process of integration in key areas.”

Mr. Nikhil Nanda, Managing Director of Escorts Limited said, “Escorts today is a transformed organization at multiple levels. We are focusing on improving operational efficiency across businesses. We are strongly focused to strengthen our manufacturing and product development capabilities, enabling us to aggressively address our markets and customers at the frontend. The strong leadership and vast experience that both Mr Menon and Mr Sridhar bring to the table would be important to achieving the ambitious objectives that the group has set for itself.”

About Escorts Limited

The ESCORTS GROUP is among India's leading engineering conglomerates operating in high growth sectors of Agri Machinery, Material Handling & Construction Equipment, Railway Equipment and Auto Components. The Group has earned the trust of over 5 Million customers by way of product and process innovations over six decades of its existence. Escorts endeavors to transform lives in rural and urban India by leading the revolution in agriculture mechanization, modernization of automotive & railway technology and transformation of Indian construction.

For further information, contact:

Sharad Gupta
Head, Corporate Communications
sharad.gupta@escorts.co.in



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