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New Delhi, January 15, 2010
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Pune, December 17, 2008
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Hyderabad, February 09, 2008
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Delhi, 4th February 2008
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26th November 2007
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September 2007
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31th July 2007
Faridabad,
17th May 2007
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Delhi, April 26, 2007
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New Delhi, January 15, 2010
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Profit Before Tax (PBT) surges over 50 fold at Rs 35.45 crore |
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EBIDTA up 82.4% at Rs. 54.15 crore |
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Agri Machinery Division revenue up by 22.5% |
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Tractor volumes grow 33.8% |
Escorts Limited has registered a 21.2% increase in sales in the first quarter of fiscal 2009-10 ending December 31, 2009. Net Sales for the quarter rose to Rs.600.22 crore as against Rs. 495.26 crore in corresponding period. Escorts Limited turned in a net profit of Rs 23.40 crore for the quarter against a loss of Rs 0.34 crore in the corresponding period. The company sold 13,561 tractors in the quarter as against 10,135 nos. in Q1 last year - a growth of 33.8%. Escorts Limited follows an October-September fiscal year.
The Company registered over 50-fold increase in Profit before Tax (PBT) Year on Year (YoY) at Rs 35.45 crore against Rs 0.70 crore of corresponding quarter. Escorts Limited increased its EBITDA by 82.4% Year on Year (YoY) to Rs 54.15 crore from Rs 29.69 crore.
Speaking on the results, Chairman and Managing Director Mr Rajan Nanda said, "Escorts has turned in a robust performance this quarter. Quarter sales have increased across the businesses. The Agri Machinery division revenue grew by 22.5% riding on market share gains by the new range of higher horse power tractors introduced last fiscal and a concerted push in designated markets.
The new tractors models address more segments and agro-climatic zones and have been well received in the market. Escorts Railways Division has got a good order book for the current fiscal and registered a revenue growth of 17.6%. The railway business offers potential for growth and Escorts is according high priority to its railway division. 4 new railway products for coaches and wagons built for the Indian Railways are to be introduced by the division. The company will further reinforce the focus on agriculture and infrastructure this fiscal."
Mr Nikhil Nanda, Joint Managing Director said, "The results reflect our consistent focus to enhance profitability through a slew of measures. All key ratios have shown significant improvement in comparison to the corresponding quarter. Material costs as a % to sales have been brought down by 2.5% from 70.3% to 67.8% through a series of cost reduction measures. Substantial term debts have been reduced leading to interest charges dropping by 58.7% to Rs 6.78 crore from Rs 16.40 crore. As we move ahead, cost rationalization and resource optimization initiatives will be further strengthened."
Profit Before Tax at Rs 111.06 crore New Delhi, December 29, 2009
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Annual sales at Rs 2157.78 crore, up 8 per cent |
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EBIDTA for FY09 increases by 35% to Rs 205.92 crore |
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Fourth Quarter sales up 14 per cent |
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Fourth Quarter Profit at Rs 60.03 crore as against loss corresponding Quarter |
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Announces Dividend of 10 per cent |
Escorts Limited today reported a Net Profit of Rs.89.74 crore for the financial year 2008-09 ending September 30, 2009, an eight fold increase in profit from the Rs 11.87 crore registered for the last financial year of 2007-08. Net Sales grew 8% to Rs 2157.78 crore as against Rs 1992.93 crore registered in last fiscal. Escorts Limited follows an October-September fiscal year.
Escorts Limited increased its Profit Before Tax (PBT) by 325% Year on Year (YoY) to Rs 111.06 crore from Rs 26.14 crore. EBIDTA for the financial year grew by 35% to Rs.205.92 crore from Rs 152.44 crore registered in the previous fiscal. Material costs as a percent of sales has been brought down by 6% through a series of cost reduction measures.
In the fourth Quarter of 2008-09 (July-September 2009), Escorts Limited recorded sales of Rs 598.86 crore as against Rs 525.69 crore in the corresponding quarter, reflecting an increase of 14 per cent. Profit for the Quarter stood at Rs 60.03 crore as against a net loss of Rs 1.19 crore in the corresponding quarter.
The Board of Directors have recommended a dividend of Rs 1.00 per equity share of Rs 10/- each, to its shareholders for the fiscal year 2008-2009 which will have an outgo of 9.07 crores plus dividend distribution tax.
 Speaking on the results, Chairman and Managing Director Mr Rajan Nanda said, "Combining financial prudence, market aggression and top-drawer talent, Escorts has re-emerged as a strong business. In the current financial year, Escorts has achieved
significant increase across all performance parameters. The Agri Machinery Division further improved its profitability with company wide initiatives for quality enhancements. The division increased its market share and launched new global quality higher horse power tractors that are adding to the volume of tractor sales. The division has now embarked on an aggressive strategy to address southern and western markets in the current fiscal year. Several new products were launched that have been well received in the markets and are adding to the volume of tractor sales. Escorts Railways Division has achieved significant growth of 39% and has got a good order book for the current fiscal. The division will be introducing 4 new railway products for coaches and wagons built for the Indian Railways. The railway business offers good opportunities and potential for growth and Escorts is giving high priority to its railway division."
Mr Nikhil Nanda, Joint Managing Director said, "We continue to focus on creating a top-quality efficient business that builds and delivers higher value for all stakeholders. In 2008-09, Escorts achieved a higher EBITDA margin at 9.4% against 7.4% of previous financial year. Cost rationalization and resource optimization initiatives have been further strengthened. All key ratios have shown significant improvement. Debt-Equity ratio is lower at 0.12 in the current year as compared to 0.38 last year. Substantial term debts have been reduced and liquidity has been comfortable through out the year. This is evident from the reduced interest payout and lower level of working capital utilization. The focus on efficiencies has led our EBITDA to grow by over 35% annually consistently over the last two financial years. Going forward our focus on agriculture and infrastructure will be reinforced and the Company is developing a blue print for further growth and profitability which will unfold as we go along. A combination of manpower and dealer productivity, products mapped to market and application and aggressive market activation is the cornerstone of Agri Machinery’s growth strategy."
The audited accounts of 2008-09 ending September 2009 has been approved by the Board of Escorts Limited.
New Delhi, November, 2009
Escorts Construction Equipment Limited (ECEL), the Construction Equipment and Material Handling Equipment manufacturing arm of Escorts Limited, today launched three new products in the construction equipment space. The company recently signed a distribution agreement with M/S Manitou BF, SA Corporation of France for its Maniscopic range of telescopic handlers and range of access platforms. Besides this, ECEL is introducing Wheel Loaders and Motor Graders for the Earthmoving segment by having an agreement with Xiamen Machinery Company Limited (XGMA) of China for marketing the products in India. The products are showcased at the 5th International Construction Equipment and Construction Technology Trade Fair (EXCON 2009).
The company has been adding new products to its existing portfolio thereby offering a wide range of innovative and value-engineered solutions to its customers. In July 2009, ECEL signed an agreement with China's Hunan Zoomlion International Trade Co. Ltd, world's top 10 mobile crane manufacturer, to market a wide range of Truck Cranes in the range of 12T-150T and All-Terrain Truck Cranes 180T-350T in India.
The Maniscopic range of telescopic handlers includes rough terrain telehandlers of carrying capacity 5T and maximum lift height of 30m. The Wheel Loaders range include 3T-5T with dump heights of 3meters and motor grader with operating range of 15T-17T with engine power of 175-240hp. ECEL will market and provide after sales, service & support through its extensive network of 104 offices across the country.
Speaking on the occasion, Mr. Kanwal Kishore Vij, CEO & Executive Director, Escorts Construction Equipment Limited said, "ECEL pioneered the Construction & Earth Moving Equipment industry in India and plans to further consolidate its leadership position in this segment of the industry. Given the planned growth and focus on the country's infrastructure and real estate projects, the arrangement with Manitou BF, XGMA and Zoomlion will provide a boost to ECEL's ongoing growth plans. The launch of these products is further expected to complement ECEL's existing range of material handling and earthmoving equipment solutions."
"By launching these world-class products in the domestic market, Escorts will be able to provide a one-stop solution to buyers," he further added.
The truck cranes and the all-terrain truck cranes are also showcased at the trade fair.
New Delhi, August 27, 2009
Escorts Limited today appointed O.K. Balraj as Group Chief Financial Officer.
A Chartered Accountant by profession, certified under the Indian Institute of Bankers, London, with an advanced degree/ diploma from Harvard University on Project Finance, Balraj comes with over 28 years of rich and valued experience in different facets of financial operations and executive management. Prior to joining Escorts Limited, Balraj was working as Group Director (Finance) at NSL Group. At NSL Group, Balraj was responsible for dealing with banks and financial institutions for raising capital for fund expansion projects, follow-up of new investments for formulating strategic business plan. He has also worked at senior positions in reputed organizations like Goghenheim Infrastructure Fund, New York, Essar Group, IDFC, ANZ Grindlays and Tata Group.
On his appointment, Mr. Rajan Nanda, Chairman - Escorts Limited said, "Balraj's focus would be to provide strategic thrust for Escorts growth through improving business economic performance of the organization with focus on profit earnings for all businesses. The company is in a resurgent phase and we are confident that Balraj's expertise and experience will be a key asset as we further implement our financial and operational strategies to move Escorts forward. We are confident that under his able guidance, the company will further strengthen its balance sheet and create significant value for our shareholders."
New Delhi, July 27, 2009
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Quarter Net Sales at Rs 582 crore; Year on Year growth of 10% |
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Quarter Profit Before Tax (PBT) up by 189% at Rs 41 crore |
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EBIDTA for the Quarter increases by 54% to Rs 63 crore |
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EBIDTA margins up at 10.9% from 7.8% |
Escorts Limited today reported a Net Profit of Rs.22 crore for the third quarter of the fiscal ending June 30, 2009, a 139% increase over Rs 9 crore registered for the corresponding period of last fiscal. Quarter sales grew 10% to Rs 582 crore as against Rs. 527 crore registered in corresponding period in last fiscal. Escorts Limited follows an October-September fiscal year.
Escorts Limited increased its EBIDTA by 54% Year on Year (YoY) to Rs 63 crore from Rs 41 crore. The Profit Before Tax (PBT) for the quarter grew by 189% to Rs. 41 crore from Rs 14 crore registered in the corresponding period last fiscal.
Speaking on the results, Chairman and Managing Director Mr Rajan Nanda said, "The transformation underway at Escorts has now begun to manifest itself in a sustained manner in the quarter results. The Quarter performance underlines the inherent strength of our businesses to grow even in challenging economic environment. The Agri Machinery Division continues to improve its profitability. Despite a sluggish market, Agri Machinery Division increased its market share by growing faster than the tractor industry. Leveraging its technological strengths, Escorts is enriching its product mix through introduction of global quality higher horse power tractors that are marked and mapped to applications. The new products launched recently address more segments and agro-climatic zones."
Mr Nikhil Nanda, Joint Managing Director said, "We are building a high-performance culture at Escorts and efficiency is a key focus. On the operational front, cost rationalization initiatives have lead to the EBIDTA margins moving up to double-digit figure of 10.9%. We have further improved our material to sales ratios in this quarter. The term debts requirements have been reduced through better management of working capital and faster turnaround of inventory. This has resulted in finance charges being lower by 32% from Rs 14.6 crore to Rs 9.9 crore."
New Delhi, July 13, 2009
To market Truck Cranes and All Terrain Cranes in India
Escorts Construction Equipment Limited (ECEL), the Construction Equipment and Material Handling Equipment manufacturing arm of Escorts, has signed an agreement with, Hunan Zoomlion International Trade Co. Ltd., China, the world’s top 10 mobile crane manufacturer and part of the US $ 4 Billion Zoomlion Group, for marketing a wide range of Truck cranes and All-Terrain truck cranes in India.
Escorts Construction Equipment Limited will market Zoomlion’s range of Truck Cranes which includes 12T-150T and All-Terrain Truck Cranes which includes 180T-350T. Currently ECEL has a wide variety of Pick-n-Carry cranes 5T-23T, Rough Terrain Slew Cranes 17T-40T under its Crane Product portfolio.
Speaking on the occasion, Mr. Kanwal Kishore Vij, CEO & Executive Director, Escorts Construction Equipment Limited said, “ECEL pioneered the Construction & Earth Moving Equipment industry in India and plans to further consolidate its leadership position in this segment of the industry. Given the planned growth and focus on infrastructure projects like flyovers and bridges, this arrangement will provide a boost to ECEL's ongoing growth plans. The launch of these truck cranes and All- Terrain truck cranes are further expected to complement ECEL’s existing range of Material handling equipment solution and hope to cater to large construction companies, engaged in infrastructural development”.
He further added, "Zoomlion is one of the most preferred brands in the worldwide construction machinery industry due to its continued innovation and focus on meeting customer needs, the same ethos as of ECEL. The synergy in business philosophy of both the entities is sure to provide some highly exciting offerings for our customers in the domestic markets".
Commenting on the tie-up Mr Xiong Yanming, Vice President, Zoomlion Group said ‘We are pleased to collaborate with Escorts Group to elevate their market presence and expansion initiatives. I have great expectation from the co-operation between Escorts Group, India and Zoomlion, China as both companies have strategic importance in the history of construction equipment industry as reputed companies in their respective countries and internationally.“
Hunan Zoomlion International Trade Co. Ltd.: The mobile crane branch of Zoomlion has been developing and manufacturing mobile cranes for the past 40 years. With a turnover of US$ 1 billion, this division is ranked top 10 in global mobile crane manufacturing. The company has been consistently striding towards modernization and internationalization. The product varies from small and medium truck cranes to heavy construction cranes of various series. The company and its products have received a series of internationally authorized certifications like 3C Certification, ISO 9001 Quality Certification, ISO 14001 Environment Certification, OHSAS 18001 Occupational Health and Safety Assessment Series and CE Certification etc.
For the Editor:
About Escorts Construction Equipment Limited (ECEL)
Escorts Construction Equipment Ltd. (ECEL), a subsidiary of Escorts Limited, is India’s leading material handling and construction equipment company. ECEL has defined the evolution of India’s Earthmoving and Construction Equipment (ECE) space over the past 37 years.
The company entered the field of Material Handling Equipment way back in 1971 when it introduced the concept of Pick-n-Carry Hydraulic Mobile crane, providing the most cost effective solution to any material handling problem. The company has since constantly introduced world-class equipments to meet the emerging need of India’s infrastructure. From Slew Cranes, Crawler Cranes, Tower Cranes to Vibratory Compactors, Loaders and Forklift Trucks, ECEL is a supplier to every major industrial/ infrastructure project in the country. Today, ECEL is World’s #1 manufacturer of Hydraulic Mobile Cranes and #2 player in Road Compaction Equipment in the Indian ECE industry.
ECEL has an extensive network of 7 zonal offices and 78 dealership locations across the country. ECEL’s wide range of innovative and value-engineered solutions, cutting-edge technology and effective after sales service has helped it in becoming the undisputed leader in the industry in India.
About Hunan Zoomlion International Trade Co. Ltd. .
Zoomlion is a leading manufacturer and distributor of construction machinery and sanitation equipments in China. Its product portfolio consists of over 100 different products, including concrete machinery, cranes, sanitation equipments, road construction machinery and other types of construction machinery and products. Zoomlion is listed on Shenzhen Stock Exchange with a market cap of approximately € 3.5 billion.
New Delhi, May 14, 2009
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Spread across 2 months, the program will reach out to farmers across the country |
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Rolled across 14 states targeting over 1 lac villages |
Escorts Limited, India’s leading tractor manufacturer, today flagged off ‘Jai Kisan Utsav’, a first-of-its-kind, customer-focused initiative for the Indian farming community. The two-month long initiative from Escorts offers host of benefits, ranging from insurance schemes, exchange programs, free service camps to special discounts, to farmers across the country. Based on ‘Bachat, Sewa and Raksha’, the foremost values for any customer with an added bonus of ‘Inam’, the initiative is a salute to each and every Indian farmer for his efforts and contributions to the country and is a step towards serving him better. A pan India drive ‘Jai Kisan Utsav’ will be rolled out across the states of Uttar Pradesh, Punjab, Haryana, Jharkhand, West Bengal, Bihar, Andhra Pradesh, Maharashtra, Gujarat, Tamil Nadu, Chattisgarh, Rajasthan, Madhya Pradesh and Karnataka, targeting over 1 lac villages across the country.
Through this initiative, Escorts’ loyalist can enjoy reduced rates on specific Escorts’ models, or get their product serviced completely free of cost, or can even go for lucrative exchange programs and much more! The Utsav will also entitle new customers to assured gifts. Not only this, in select states customers can also participate in lucky draws and win fabulous prizes ranging from a watch to an Alto car! The company will also be offering ‘Humrakshak’ Kisan Insurance Policy, a first-of-its kind personal accident cover for farmers on purchase of Escorts tractors.
Speaking on the launch of the ‘Jai Kisan Utsav’, Mr. Rohtash Mal, Executive Director and CEO, Escorts Agri Machinery Group said, “Over the past 6 decades, Escorts in its own way, has been a part of the dynamic process which ushered in farm mechanization and brought prosperity to Indian farmers. Today, the Escort brand of tractor is symbolic of reliability and trust. We have been endlessly serving the Indian farming community by creating a whole world of opportunities, starting from high quality innovative products, services and customer centric initiatives. ‘Jai Kisan Utsav’ is one such initiative from Escorts which will go a long way in reaffirming our commitment to continuously enhance India’s agricultural productivity and our relationship with the farmer.”
A first-of-its-kind programme from the stables of Escorts, the ‘Utsav’ is an ambitious penetration drive by the company to engage the farming community. To create a unifying platform for unleashing the array of initiatives, offers and schemes, Escorts Limited will be launching below-the-line initiatives such as road shows, customer meets, and service camps across the country. The company is also engaging in above the line activities to drive traffic to these camps.
For the Editor:
Escorts Limited pioneered farm mechanization in the country by launching Escorts Agricultural Machines Limited in 1948, with a franchise of the U.S.-based Minneapolis Moline, for marketing tractors, implements, engines & other farm equipments. In 1960, the company set up the strategic Agri Machinery Group (AMG) to venture into production and marketing of tractors and rolled out its first batch of tractors in 1965 under the ‘Escorts’ brand name. In 1969, a separate company, Escorts Tractors Ltd. was established with equity participation of Ford Motor Co., Basildon, UK for the manufacture of Ford agricultural tractors in India. In the year 1996, Escorts Tractors Ltd. formally merged with Escorts AMG.
With over 1 Million Escorts tractors rolled out since the company’s inception and a production capacity of 98,940 tractors per annum, Escorts Tractors are amongst the largest selling tractors in India where every third tractor is an Escorts brand.
The Escort brand of tractors is symbolic of reliability and trust. Spanning three brands, viz. ‘Escort’, ‘Powertrac’, and ‘Farmtrac’, the company has a comprehensive range of tractors, more than 45 variants starting from 25 to 80 HP, to cater to both domestic as well as overseas markets. Escorts is the first tractor manufacturer in the world which has been awarded the prestigious TS 16949 Certification for its quality management.
New Delhi, April 21, 2009
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Half year PBT up at Rs 16.46 crore |
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Quarter PBT at Rs 15.76 crore |
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Quarter Net Profit at Rs 7.82 crore |
Escorts Limited today reported a higher profit of Rs.7.48 crore for the half year ended 31st March 2009. The Profit Before Tax stood at Rs.16.46 crore for the half year, as against a profit of Rs.6.77 crore in the corresponding period. The rise in profit was as a result of focused efforts by the company in regulating and controlling cost and expenses and improving product technology and quality. Total half yearly sales and income from operations also rose from Rs 963.45 crore in the previous year to Rs 993.27 crore this year. The company reported a cash profit of Rs.36.84 crore as against Rs. 34.94 crore in the corresponding period. Escorts Limited follows an October-September fiscal year.
The company closed the quarter with profit before tax standing at Rs.15.76 crore and net profit at Rs 7.82 crore. Total sales and income from operations, however, fell for the quarter from Rs 531.47crore in the previous quarter to Rs 491.66 crore this quarter.
Speaking on the results, Chairman and Managing Director Mr Rajan Nanda said, "The results demonstrate the financial robustness that the restructuring exercise has imparted to our business. The Tractors business has made significant gains in the past half year by improving its operational efficiencies and profitability, and is on a stronger footing to withstand difficult market conditions created by the decelerating economy and constrained farm credit flow. The initiatives on cost compression, quality enhancement and resource optimization have contributed to the bottomline."
“The Railway equipment business continues to consolidate its leadership and has registered a healthy sales growth of 37% for the quarter. Plans for freight corridor, metros and high-speed trains are a large window of opportunity that the Railway equipment business is well poised to exploit with a portfolio of new products and technologies,” he further added.
According to Joint Managing Director Mr Nikhil Nanda, "Escorts is rooted in ground realities, and has the wisdom of experience and the vision to take the burden of difficult times on itself. We are well poised to face market situations with a robust team of professional, competitive portfolio of products and strong marketing and financial credentials."
New Delhi, January 28, 2009
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EBIDTA up 44% at Rs.29.69 crore |
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Profit Before Tax at 0.7 crore |
Escorts Limited has registered a 16.7% increase in sales in the first quarter of fiscal 2008-09 ending December 31, 2008. Despite tight market conditions, Escorts Limited grew its sales for the quarter to Rs. 495 crore as against Rs.424 crore in corresponding period. Continuing its focus on improved earnings, the company recorded a 44% increase in EBIDTA at Rs.29.69 crore as against an EBIDTA of Rs. 20.64 crore in corresponding period.
The company registered a Profit Before Tax of Rs 0.7 crore against a loss of Rs 10.05 crore in the corresponding period. After providing for taxes, the company registered a lower net loss at Rs 0.34 crore against a net loss of Rs 5.93 crore in the corresponding period of previous fiscal.
During the quarter the company launched four-cylinder offering POWERTRAC 4455 (also PT 4455) specially designed keeping in mind the increased proliferation of tractor usage for specialized applications and heavy-duty implements & attachments. Powertrac 4455 offers a unique combination of "HIGH PRODUCTIVITY – FUEL EFFICIENCY". PT 4455 is positioned as India's No 1 economy tractor in the 55HP category and is ideal for all types of agriculture and non farm applications. The Construction Equipment Business introduced TRX 2319, the largest articulated Pick-n-carry crane in the world.
Speaking on the results, Chairman and Managing Director, Mr Rajan Nanda said, "The quarter results reaffirm the soundness of the strategic path being followed at Escorts Limited. In a market that is very different from the corresponding period of last fiscal, Escorts has reported improved performance across all parameters. We continue to build a robust and comprehensive portfolio of products offering price competitive models of global quality norms in terms of technology, performance and durability. Both, agri-machinery and the construction equipment business have seen the successful launch of new products. The Railways Equipment Division's business with the Government continues to grow."
"As per the current estimates, agriculture is expected to continue to grow at 4% plus despite the major slow down in the other sectors of Economy. However, the slowdown in the disbursal of farm-directed finance poses a big challenge. It is hoped that the government will step up the efforts to accelerate the lending and ensure that targets for priority sector finance are met," Mr Nanda said.
According to Joint Managing Director Mr Nikhil Nanda, "The gains of unyielding focus on the value builders of our core business are clearly evident in the current quarter. The significant increase in EBIDTA has been achieved through a concerted effort to drive down costs and enhance operational efficiencies through raw material rationalization and energy savings. With a top-class leadership at the helm of affairs, the efforts to be efficient and customer oriented will continue unabated."
New Delhi, December 29, 2008
Higher market share, improved earnings, structural
reorganisation, cost efficiencies drive Escorts back into profits
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Economic management strategies deliver healthy profits in a high inflation, constrained demand scenario |
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Domestic sales ramps up through aggressive, revamped retail push |
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Fiscal FY08 EBITDA up 40 per cent |
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Cash profit doubles to Rs 96.55 crore |
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PBT up at Rs 45.54 crore after loss previous year |
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Strong rural demand hobbled by slowdown in agri finance disbursal |
Escorts Limited profits rose to Rs 11.87 crore in financial year 2007-08 ending 30th September 2008 on the back of a slew of strategies that has delivered higher domestic market share, improved earnings from a lower market base, structural reorganisation and greater cost and operational efficiencies. This is against a loss in the previous fiscal of Rs 6.44 crore.
The company recorded a higher EBIDTA of Rs 152.48 crore as against an EBITDA of Rs 109.50 crore in the previous fiscal. Cash profit more than doubled in fiscal 2007-08 at Rs 96.55 crore as against Rs 40.55 crore in the corresponding period. Profit before Tax and exceptional items stood at Rs 45.54 crore as against a loss of Rs 10.75 crore in the previous fiscal.
Escorts domestic sales grew faster than the market during the fiscal, aided by the strengthening of its sales and marketing network. The rise in profits was substantially aided by improvement in cost management and rationalization. Escorts Limited follows an October-September fiscal year.
The Railway Equipment Division also witnessed significant growth in the air brake, brake blocks, shock absorbers, couplers etc. As a result, RED business has grown by 24% over the previous fiscal, while exports grew by 100%.
Despite industry slowdown in tractor sales, Escorts Limited maintained its overall sales performance. There was a marginal dip in total sales revenue due to sharp decline in exports which were impacted by the sharp rupee appreciation. However, domestic sales demonstrated strong growth. Total sales for the fiscal stood at Rs 2051.51 crore as against Rs 2,102.15 crore in the previous fiscal. Escorts also captured incremental growth beyond the industrial volume of the market by adding niche products to the portfolio. These included Lighter axle rice plantation tractor for South India and Heavy duty large four wheel drive tractors.
Speaking on the results, Chairman and Managing Director Mr Rajan Nanda said, "Escorts Limited has proven through its performance in fiscal 2007-08 that the efforts to strengthen the fundamentals of the company, sharpen focus on core strengths, build value for customers and drive operational efficiencies have put the company on a profitable track. At a time when industry and business the world over is challenged by tough economic conditions, Escorts has demonstrated even in tough times that relentless focus on fundamentals of cost, product quality, operational efficiencies and a culture shift in driving business value can deliver profits, customer and shareholder value."
"Today, the strong rural demand is becoming hobbled by the slowdown in disbursal of farm-directed finance. The big challenge for the year ahead will be to deal with the slowdown in bank credit which has created an artificial squeeze of demand in the agri machinery sector. The negative mode in which public sector banks are disbursing loans in the rural areas have resulted in only a third of the priority sector loan targets being met. It is hoped that the government will work expeditiously to ensure that the targets for priority sector lending are met in the remaining months of the current Union fiscal year," Mr Nanda said.
According to Mr Nanda, "The agri machinery business registered strong growth in profitability. Right through the year, despite difficult market conditions, Escorts increased its market share. In the current economic situation, the agriculture sector with its relative insularity from the buffets of global financial collapse can provide India the necessary growth engine. It is for the government to ensure that retail finance in the rural areas meets the goals that the government itself is committed to."
According to Joint Managing Director Mr Nikhil Nanda, "From a cost point of view, this was one of the toughest years given the huge spike in petroleum prices and the consequent impact on raw material prices. The full year results demonstrate that cost reduction, operational efficiencies, raw material rationalization and energy saving have resulted in a strong, profitable performance. Despite very high inflationary pressures for almost the entire year, the battle for controlling costs won the day. Most important, Escorts today has a team that has performed exceedingly well in tough market conditions."
Pune, December 17, 2008
Powertrac 4455 marks the company’s entry in the 4-cylinder tractor segment
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PT 4455 - India's No. 1 Economy Tractor |
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Best 'Productivity- Economy Combo' tractor with high end features |
Escorts Limited, India's leading tractor manufacturer, showcased its recently launched four-cylinder offering POWERTRAC 4455 (also PT 4455) at India's largest agricultural show KISAN'08 (Agri Fair) - being held at International Exhibition Centre, Moshi, Pune. Powertrac 4455 from Escorts Limited has been specially designed keeping in mind the increased proliferation of tractor usage for specialized applications and heavy-duty implements & attachments. The other tractors on display were high end products, which are being currently marketed by Escorts in various global markets.
Powertrac 4455 offers a unique combination of "HIGH PRODUCTIVITY – FUEL EFFICIENCY". PT 4455 is positioned as India's No 1 economy tractor in the 55HP category and is ideal for all types of agriculture and non farm applications. Initially, available across Escorts network in the markets of Maharashtra, Punjab, Haryana, Uttar Pradesh (West) and Tamil Nadu the product with improved ergonomics offers high-end features like power steering & Dual PTO. PT 4455 is Bharat 3 compliant and includes high capacity hydraulics and a heavy duty gear box.
Speaking at the launch Mr. Rohtash Mal, Executive Director and CEO, Escorts Agri Machinery Group said, "The launch of Powertrac 4455 reaffirms our commitment to continuously enhance our products to suit specific needs of our customers. Our aim is to develop solutions that will enhance agricultural productivity and improve quality of life in rural India". Mr. Mal added, "PT4455 is a highly versatile offering and can be a great asset to farmers and entrepreneurs, across the country be it the black cotton soils of Maharashtra, or prosperous farmers of Punjab/Haryana, or heavy duty non farm applications like the loader, dozer etc.”
"Escorts has aggressive plans of further increasing the market reach and subsequently the market share by offering price competitive models of global quality norms in terms of technology, performance and durability. This, backed by spare-parts & after sales service support deliveries, will help us deliver to our customers an overall satisfaction and success package for a long-term win-win relationship," he further added.
For the Editor:
Escorts Limited pioneered farm mechanization in the country by launching Escorts Agricultural Machines Limited in 1948, with a franchise of the U.S.-based Minneapolis Moline, for marketing tractors, implements, engines & other farm equipments. In 1960, the company set up the strategic Agri Machinery Group (AMG) to venture into production and marketing of tractors and rolled out its first batch of tractors in 1965 under the '‘Escorts' brand name. In 1969, a separate company, Escorts Tractors Ltd. was established with equity participation of Ford Motor Co., Basildon, UK for the manufacture of Ford agricultural tractors in India. In the year 1996, Escorts Tractors Ltd. formally merged with Escorts AMG.
With over 1 Million Escorts tractors rolled out since the company's inception and a production capacity of 98,940 tractors per annum, Escorts Tractors are amongst the largest selling tractors in India where every third tractor is an Escorts brand.
The Escort brand of tractors is symbolic of reliability and trust. Spanning three brands, viz. 'Escort', 'Powertrac', and 'Farmtrac', the company has a comprehensive range of tractors, more than 45 variants starting from 25 to 80 HP, to cater to both domestic as well as overseas markets. Escorts is the first tractor manufacturer in the world which has been awarded the prestigious TS 16949 Certification for its quality management.
New Delhi, July 29, 2008
Nine month profits up at Rs 13.05 crore
Quarter PBT up 76.70% at Rs 14.33 crore
Nine month PBT up 474.93 % at Rs 21.10 crore
Escorts Limited has registered a 5.3 per cent increase in sales and a 49 per cent increase in net profit in the third quarter of fiscal 2007-08, ending June 30, 2008. Despite tight market conditions, Escorts Limited improved its performance over the corresponding quarter. The Profit After Tax stood at Rs 9.30 crore as against a loss of Rs 6.24 crore in the corresponding quarter. The profit for nine months was up to Rs 13.05 crore from a negative Rs 2.56 crore in the corresponding period. The rise in profits was substantially aided by improvement in cost management and rationalization. Escorts Limited follows an October-September fiscal year.
The company recorded a 76 per cent rise in profit before tax with the quarter reporting a PBT of Rs 14.33 crore as opposed to a loss of Rs 8.11 crore in the corresponding quarter last year. Total sales went up by 5.3 per cent to Rs 542.80 crore from Rs 515. 49 crore in the corresponding quarter. However, nine month sales slipped by 6.26 per cent to Rs 1,506.29 crore from Rs 1,606. 96 crore in the corresponding nine months.
Speaking on the results, Chairman and Managing Director Mr Rajan Nanda said, "Escorts Limited has turned in a good performance under difficult market conditions. What is particularly heartening is that the agri machinery business has registered strong growth both in the topline as well as profitability in the quarter. Our market share has grown despite difficult market conditions. We plan to further strengthen our sales and marketing efforts and introduce new products. While the quarter results reflect a strengthening of our business, we must underline that going forward the prevailing market conditions pose tough challenges for the sector. Public Sector retail finance for tractors continues to be sluggish and of concern. Tractor sales are dependent upon loan sanctions by public sector banks and it is imperative for the government to send strong signals to the banking sector to significantly step up lending to the priority sector, otherwise farm productivity and tractor sales will get impacted. The additional challenge is from the general inflationary environment, with critical raw materials such as steel witnessing three price increases within six months. The overall impact on the economy of rising oil prices and concomitant inflation is bound to have a general impact sooner than later."
According to Joint Managing Director Mr Nikhil Nanda, "The company's focus on fundamentals have paid back with a significant rise in the EBITDA to sales margins which has resulted from consistent attention on cost reduction initiatives across the company, raw material rationalization and energy saving initiatives. The stock correction strategy which focuses on cash generation and optimized stock levels at the distributor and stockist points has contributed significantly to controlling costs. Finally, our continued effort at building people resources has put in place a team that is battling the tough market conditions with insight and nimble responses."
New Delhi, April 22, 2008
Half Year profits up at Rs 3.75 crore
Quarter PBT up 100 per cent at Rs 16.82 crore
Half year PBT up 52 per cent at Rs 6.77 crore
Escorts Limited today reported a higher profit of 44.26 per cent for the quarter ended 31st March 2008, riding on the back of improved operational efficiencies. The Profit After Tax stood at Rs 9.68 crore as against Rs 6.71 crore in the corresponding quarter. The profit for six months was up to Rs 3.75 crore from Rs 3.67 crore in the corresponding period. The rise in profits was substantially aided by significant improvement in cost management, with total expenditure falling sharply to Rs 485.48 crore for the Quarter as opposed to Rs 529.04 crore in the corresponding quarter last year as per unaudited financial results for the quarter ended March 31, 2008. Escorts Limited follows an October-September fiscal year.
The company recorded significant rise in profit before tax with the quarter reporting a PBT of Rs 16.82 crore as opposed to Rs 8.42 crore in the corresponding quarter last year. Total sales and income from operations, however, fell for the half year from Rs 1091.46 crore in the previous year to Rs 963.45 crore this year. However, total sales in the quarter ended March 31, 2008 was significantly higher at Rs 531.47 crore as against the first quarter of the current fiscal when total sales had stood at Rs 431.98 crore.
Speaking on the results, Chairman and Managing Director Mr Rajan Nanda said, “We have made significant gains in the past quarter, particularly in improving our operational efficiencies and improving our profitability. We have significantly improved our cost performance and that has aided bottomline growth. We have improved upon the previous quarter sales, recording a significant 23 percent growth in the second quarter as compared to the first quarter of the current fiscal. We wish to grow our business volumes for tractors by about 20-25% over the over the next 2 years. “Farmtrac” is an established brand with a strong reputation of quality products. We will build further on this brand. Additionally, we wish to capture incremental growth beyond the industrial volume of the market. Accordingly, we have added strategically identified niche products to our portfolio.”
According to Joint Managing Director Mr Nikhil Nanda, “The company is poised well to ride the growth sectors it has aligned its businesses. People are at the centre of the transformation that is underway at Escorts. We have today a leadership team that represents the best human capital in their respective industries. These are the people whose collective efforts will transform Escorts into a high performance company with strong marketing and financial credentials.”
New Delhi, March 11, 2008
Escorts Construction equipment Limited (ECEL), has
recently collaborated with Construction Industry Development Council (CIDC),
established by the Planning Commission, to roll out skill upgrading programs for
construction equipment operators and technicians.
Mr Kamal Bali, CEO & Executive Director, ECEL and Mr.P.R.Swaroop Director
General from CIDC signed a Memorandum of Understanding (MoU) to this effect.Also
present on the occasion was Mr. Rajeev Jain , Deputy Director CIDC. This Joint
Certification Program is an initiative to address the growing demand for trained
manpower in the infrastructure industry, which is witnessing tremendous growth and is
expected to cross Rs. 40,000 crores by the year 2015.
ECEL will launch the CIDC accredited training programs all across the country in a
phased manner. The first program is scheduled to be launched at Palwal for Crane
Operator Training covering the operations , upkeep and maintenance of Cranes . In order
to increase participation in the training program, ECEL is offering this service at a no
profit and no loss basis and would not charge any fees for training. However a prescribed
fee would be charge for select programs which meet the CIDC – Assam University
criteria.
Elaborating on the collaboration, Mr Kamal Bali, CEO & Executive Director, ECEL
said, “Increasing productivity with the use of skilled manpower is critical to the success
of a manufacturing set up. Hence it is essential to provide specialized training to workers
and technicians to ensure maximum productivity and improvement of process quality.
Hyderabad, February 09, 2008
Escorts Construction Equipment Limited (ECEL), the
Construction Equipment and Material Handling Equipment manufacturing arm of
Escorts, has expanded its product portfolio and launched Crawler cranes in India.
Escorts Construction Equipment Limited has signed up with IHI Construction Machinery
Limited of Japan which is part of IHI Limited, a USD 12 billion company, for marketing
its entire range of crawler cranes in India.
Marking the launch of Crawler cranes, Mr. Tsuuneo Nagase (Deputy General Manager-
Crane Group – International Division), IHI and Mr. Koji Hibino – GM (India
Operations), IHI along with Mr. Rajesh Sharma (Associate Vice President – Marketing
ECEL) handed over the key to the first customer in India, city-based Navayuga
Engineering Co Ltd.
Mr. Rajesh Sharma, says, “ECEL pioneered the Construction & Earth Moving
Equipment industry in India and plans to further consolidate its leadership position in the
segment. Infrastructure and real estate development are driving rapid growth of the
construction equipment industry. ECEL is geared to tap this opportunity with a slew of
product offerings for the diverse set of verticals in the industry.”
According to industry estimates, the Construction & Earth Moving Equipment industry is
currently estimated to be around Rs9000 crores (2.25 billion US dollars) and expected to
grow to about Rs 40000 crores (10 billion US dollars) by the year 2015.
IHI Crawler Cranes – Ideal for Greenfield projects
IHI Crawler Cranes are packed with features and attributes which are desirable for the
end customers. The Crawler Crane, finds extensive usage in erection work at any
Greenfield project including the erection work involved in a power project especially
thermal power and nuclear power, urban infrastructure Projects such as Metro Rail
projects & Flyovers.
The IHI crawler cranes are fully hydraulic 360 degree slew crawler cranes, having better
lift duties, higher reaches and low ground bearing pressure in its class.
ECEL – pioneers of Earth Moving & Construction Equipment industry in India
ECEL pioneered the ECE industry in India. It is India’s largest mobile crane
manufacturer and world’s largest manufacturers of the Pick-n-Carry Cranes.
With over three decades of presence, ECEL is a dominant player in the Material
Handling, Construction Equipment and Road Construction Equipment sectors. It has also
recently received the award in the category of fastest growing company from CWNICMAR,
a nationally recognized award. It manufactures a wide range of Pick-n-Carry
Cranes, Slew Cranes, Loaders, Vibratory Soil Compactors and Tandem Vibratory
Rollers. ECEL also markets & distributes world renowned brands in the product
categories of Fork Lift Trucks, Articulated Boom Cranes, Power and Telecom Utility
Equipment, Tower and Crawler Cranes.
New Delhi,
4th February 2008
ECEL to market the world renowned 'LeeBoy'
brand of equipment for road construction and maintenance
purposes, complementing its existing range
Escorts Construction Equipment Limited (ECEL), the
Construction Equipment and Material Handling Equipment
manufacturing arm of Escorts has inked a very significant
agreement with Singapore Technology Kinetics (STK)
- the owners of the US based 'LeeBoy' brand - to
market 'LeeBoy' brand of equipment for road construction
and maintenance purposes. The earmarked territories
for marketing of the products by ECEL include some
of the high growth geographical areas like India,
Nepal, Srilanka and Bhutan. Singapore Technology
Kinetics (STK) is part of the Temasek Group.
Amongst others, these equipments shall include Motor
Graders, Hydrostatic Pavers and Pothole Patchers.
These products are expected to complement ECEL's
existing range of road compaction equipment and
provide the much-needed one - stop shop for Road
Construction & Maintenance equipment to the
customers.
Given the planned growth and focus on infrastructure
projects like Roads, this arrangement will provide
a big fillip to ECEL's ongoing mega growth plans.
ECEL's green-field world-class manufacturing facility
in Ballabgarh, covering an area of 270,000 sq ft,
spread over 15 acres land is expected to be on stream
during the first half of 2008. This will help more
than double the current manufacturing capacity in
the initial phase, and to over 14,000 units annually,
at the end of the second round of the planned expansion
programme.
Mr. Rajan Nanda, Chairman of Escorts, commented:
"ECEL has a highly ambitious growth plan over
the next five years, with a slew of new product
introductions, making forays into adjacent and familiar
verticals. The tie up, much in align with our growth
plans will complement our offerings and further
consolidate our leadership position in the segment."
Mr. Nikhil Nanda, Joint Managing Director of Escorts,
said on the tie up: "LeeBoy is one of the most
preferred brands in the worldwide road construction
industry due to its continued innovation and focus
on meeting customer needs, the same ethos as of
ECEL. The synergy in business philosophy of both
the entities is sure to provide some highly exciting
offerings for our customers in our territories,
both domestic and overseas, in the coming days".
About ECEL: The company was incorporated
in 1995 following a spin-off from its parent, Escorts
Limited, where ECEL operated as a division manufacturing
cranes. The pioneers and the largest manufacturers
of the Pick-n-Carry Cranes worldwide and with over
three decades of presence, ECEL is a dominant player
in the Material Handling, Construction Equipment
and Road Construction Equipment sectors. It manufactures
a wide range of Pick-n-Carry Cranes, Slew Cranes,
Loaders, Vibratory Soil Compactors and Tandem Vibratory
Rollers. ECEL also markets & distributes world
renowned brands in the product categories of Fork
Lift Trucks, Articulated Boom Cranes, Tower and
Crawler Cranes.
New Delhi, 26th November 2007
Escorts today announced the appointment of Mr. Rohtash
Mal as the Executive Director & Chief Executive
Officer of its Agri Machinery Group.
An alumnus of IIM Calcutta and IIT Delhi, Mr. Mal
has over 27 years of experience in managing a diverse
range of industrial and commercial enterprises.
In his previous assignment Mr. Mal was the Chief
Executive of Bharti Fieldfresh Ltd. He started his
career with Ballarpur Industries Ltd. where he went
on to head the Paper Division as its Vice President
for Sales & Marketing. Mr. Mal was also the Chief
General Manager - Marketing & Sales at Maruti Udyog
Limited and later the Chief Executive with Bharti
Airtel Ltd. in its mobility and broadband / telecom
services business verticals.
On his appointment, Mr. Rajan Nanda - Chairman of
Escorts said, "With continued significant focus
being laid on agriculture and farm mechanization
in the country, we have a great opportunity on our
hands. Mr. Mal's rich experience in successfully
driving business growth in sectors like paper, automobiles,
telecom and retail will help us further improve
our competitive advantage. We are confident that
Mr. Mal's strong business orientation will place
Escorts in a stronger position in the Agri Machinery
sector."
New Delhi, 14th November 2007
ECEL, a subsidiary of Escorts Limited and
a leader in the Indian Construction and Material
handling Equipment Industry, today launched TRX
Series of Pick-n-Carry Cranes in the 23T (TRX 2319),
17T (TRX 1713) and 16T (TRX 1614) category in EXCON
2007.
TRX Series Cranes are packed with features and attributes
which are desirable for the end customers. Some
of its key attributes are :
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High Lifting capacity -
23T, 17T and 16T. TRX 2319 is the largest
articulated Pick-n-Carry in the world |
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Faster Speed - Travel at
faster (up to 40 km/hr) on its own power thus
make it an ideal solution for hirers and contractors
who need to reach from one site to another
in reasonable time |
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Boom height of 21.5 m.
This is an additional advantage for contractors/construction
companies involved in erection and commissioning
of huge projects as they would be able to
combine the lifting prowess with the boom
height advantage |
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Centrally / Front Mounted Cabins
for improved visibility and placement of load |
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Hydrostatic Transmission in TRX
2319 (again a first time in these type of
cranes), keeping global aspirations
in operation ease and precision mind |
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All the tyres are of same size
for better interchangeability |
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ECEL has been a pioneer in
Pick-n-Carry Cranes and it has always come out with
new products and innovations in line with the customer
needs. With the launch of new TRX series, Escorts
will take the process of innovations forward and
maintain leadership.
TRX series cranes have been designed while keeping
in mind the requirement of handling heavier loads
to higher heights due to scaling-up of construction
and infrastructure projects and to meet the global
operational and safety standards. Further, because
of the enhanced features and safety, these cranes
will also find acceptance in market outside India.
We being the leader would like to maintain our position
by continuously adding values to our customer requirements.
In another development, a partnership with Alpha
Services, leading manufacturers and pioneers of
Mobile Tower Cranes in India, ECEL will exclusively
be marketing its range of mobile tower cranes. The
under-hook height of 39mts available in this range
is the highest in the country in Mobile Tower crane
segment. They are self-erecting and self-folding
through a cable remote and are available in tow
able/Self propelled versions.
ECEL is a subsidiary of Escorts and a dominant player
in the Material Handling, Construction Equipment
and Road Construction Equipment sectors. With over
three decades of presence, ECEL is the pioneers
and the largest manufacturers of the Pick-n-Carry
Cranes worldwide. It has a wide range of products
like Pick-n-Carry Cranes, Slew Cranes, Loaders,
Vibratory Soil Compactors and Tandem Vibratory Rollers.
The recent launch will further strengthen its position
in the market.
New Delhi, 19th September 2007
At the Board Meeting of Escorts Limited held today,
Mr. Nikhil Nanda, Director and Chief Operating Officer
has been elevated to the position of Joint Managing
Director of the company. In his new role, he will
lead the operations of the company and will drive
the business growth initiatives of Escorts.
Mr. Nikhil Nanda has been the Executive Director
of the company since May 2000 and later in October
2005 he had taken over the additional role of Chief
Operating Officer. As the ED & COO he has been instrumental
in strategically positioning Escorts in the global
arena. Very successfully he has been driving the
expansion program of the construction equipment
business, the fastest growing business of Escorts,
through its subsidiary Escorts Construction Equipment
Limited. To further consolidate the leadership position
of Escorts in construction equipment business, he
has been driving the setting up of a green field
project at Ballabhgarh for manufacturing a whole
range of construction equipment. On completion,
this facility will provide a multiplier growth to
the business top line of Escorts. In his endeavour
of offering best in class technology and products
from the stable of Escorts, he has successfully
concluded arrangements for technology for several
new products like forklifts, tower cranes, crawler
cranes, loaders with technology front runners like
Doosan, IHI, Weihai Huata, ALTEC.
The third generation of the entrepreneurial family,
Mr. Nikhil Nanda (33 years) is an alumnus of Wharton
School of Management, USA. Having graduated in Business
Administration in 1995, he had joined Escorts in
1997 and possesses complete understanding of the
company business and its prospects. He is a member
on the Board of most Group companies since 1997.
He is also among the five Indians selected as the
Global Leaders of Tomorrow for the year 2001 by
the World Economic Forum, Geneva.
Oct/Jun (9 mnths)
|
Turnover higher by 29.6% at Rs 1607 crs
vs Rs 1240 crs prev year. |
|
Oct/Jun TIV growth stands at 3%. Escorts
sales volumes higher by 23.6% at 41,357 units. |
|
Cash Profit Rs.36.71 crs. vs. 24.29 crs.
prev year. |
|
Turnover higher by 8% at Rs.515 crs. vs.
Rs.478 crs. prev year. |
|
Apr/Jun Tractor Industry Volumes (TIV) registers
a sharp de-growth (-) 7%. Escorts sales volumes
are marginally lower by 2% at 12,865 units. |
|
Cash Profit Rs.4.33 crs. vs. Rs.16.28 crs.
prev year. |
|
Adverse impact of Rupee appreciation on
Exports in Apr/Jun (Q3) is Rs.10.5 crs. vs.
gain of Rs.3.5 crs. in prev year. |
|
PAT at (-) Rs.6.24 crs. vs. Rs.1.57 crs.
prev year. |
- Successfully raised QIP of
Rs.150 crs. in July '07. This will be utilized
for retiring high cost debt and thereby accrue
large interest cost savings while ensuring significant
improvement in Debt : Equity.
- 100% subsidiary, Escorts Construction
Equipment Ltd (ECEL) maintains high trajectory
growth and this quarter registers a Revenue
growth of 46% vs prev year and an EBIDTA growth
of 106% vs prev year.
New Delhi, July 31, 2007
|
Despite a huge de-growth of 7% in the Apr/June
period for the Industry, the revenues of Escorts
in Q3 of its FY 06-07 has increased to Rs.515.50
crs. against Rs.478.50 crs prev year. The
company has posted a cash profit of Rs.4.33
crs. in this quarter against Rs.16.28 crs.
prev year after factoring the adverse variance
impact of Rs 14.00 crs vs prev year on Exports
due to a sharp appreciation of the Rupee.
|
|
For the 9 mnth period Oct/Jun, the Industry
volumes have grown 3% and Escorts has grown
23.6%. The 9 mnth revenues of Escorts are
Rs1607 crs vs Rs 1240 crs prev year. The cash
profit in the period is Rs 36.71 crs vs 24.29
crs prev year.
|
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The de-growth over Apr/Jun despite a good
crop was due issues pertaining to Policy which
adversely affected Economic returns to Farmers
and also the availability of Retail Finance.
The Government is seized of the situation
and the Agriculture Ministry in consult with
the economic Ministries, is attempting to
immediately remove the logjam.
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With the anvil of the monsoons, the Kharif
crop is expected to be good which augurs well
for economic cascade and with the resolution
of these 2 issues through the Ministry of
Agriculture, demand growth will be resurrected.
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Going forward, the company has underpinned
its Strategy to look at the mix of options
covering Price & Costs and better Resource
utilisation while concentrating on consolidating
its position in the Domestic market and targeting
International markets where the impact of
Rupee appreciation is minimal. The company
is also pursuing cost effective sourcing of
components from overseas.
|
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In the just concluded QIP, Escorts successfully
raised Rs.150 crs and is in the process of
retiring its outstanding debt substantially.
The residual Debt servicing in terms of installment
repayments and interest cost will be significantly
lower which will consequently make a step
improvement in Company's Cash Flows. Subsequently
the funding of working capital would be optimized
in the ensuing quarter which would enable
the company harness adequate funds for volume
growth.
|
|
The Board noted that its construction equipment
subsidiary ECEL continued on its high growth
path. Revenues for ECEL in its Apr/Jun Quarter
grew 46% at Rs 98 crs vs Rs 67 crs prev year
and EBIDTA growth is 106% at Rs 9.78 crs vs
Rs 4.74 crs prev year.
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The Board believes that ECEL can continue
this momentum by accelerating its new initiatives
on output excellence on one hand and making
strategic forays into new product offerings,
leveraging on cutting edge technologies. ECEL's
new state-of-the-art manufacturing facility
under construction at Ballabhgarh is expected
to be commissioned by Jan '08.
|
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Underpinning their confidence in the Company
and its prospects, the Promoters are increasing
their share-holding by exercising the conversion
of share warrants issued to them on 31st March
'06 and bringing in additional Equity into
the Company.
|
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Commenting on the growth plans Mr. Rajan
Nanda, Chairman, said, "Our emphasis
continues on core business lines which are
in sync with (a) the irreversible growth in
the Agri-Economy which is key to the actualization
of the growth plans of the Nation and (b)
the growth in the Infrastructure and Real
Estate sectors. With this continued emphasis,
we look at the future with renewed energy
and confidence".
|
17th May 2007, Faridabad: Escorts Construction
Equipment Limited (ECEL) has signed up with IHI
Construction Machinery Limited of Japan, the US$
8 billion manufacturer of crawler cranes, for marketing
of its crawler cranes in India.
In another major sign up with Weihai Huata Building
Machinery Co. Ltd. of China, the largest manufacturers
of tower cranes, ECEL will be marketing its range
of tower cranes in India. Weihai Huata Building
Machinery Co., Ltd. is a specialized company with
leading product of "Huata" tower cranes.
ECEL is a subsidiary of Escorts and a dominant player
in the Material Handling, Construction Equipment
and Road Construction Equipment sectors. With over
three decades of presence, ECEL is the pioneers
and the largest manufacturers of the Pick-n-Carry
Cranes worldwide. It has a wide range of products
like Pick-n-Carry Cranes, Slew Cranes, Loaders,
Vibratory Soil Compactors and Tandem Vibratory Rollers.
|
Q2 Turnover up 32% at Rs. 574 cr |
|
Cash profit up by 57% at Rs. 22.81 cr |
|
Improvement in PAT levels by Rs 22.89 cr |
|
Tractor sales up by 24% |
New Delhi, April 26, 2007: Escorts continues
its unabated growth with strong performances in
the second consecutive quarter ended March 2007
(FY October 2006 - September 2007). Moving ahead
as per its chalked out resurgence program, the company's
production and sales volumes have gone up considerably
(sales volume of tractors up 24% at 14,795 from
11,970 in the corresponding quarter of previous
year).
As a result, the company has posted a 32 per cent
rise in turnover at Rs.574 cr in the quarter ended
March 2007 as compared to Rs.435 cr in previous
year. PBIDTA is at Rs.44.61 cr, up 31% as compared
to Rs.34.22 cr in corresponding quarter previous
year. The company has recorded a cash profit of
Rs.22.81 cr during the quarter as compared to Rs.14.56
cr in the same period of previous year. The profit
after tax is at Rs.6.71 cr compared to loss of Rs.16.18
cr for same period previous year.
Commenting on the growth plans Mr. Rajan Nanda,
Chairman, said, "We have laid great emphasis on
improvement, innovation and effective execution
of our offerings which are improving business economics.
Having aligned ourselves to some of the fastest
growing sectors of recent times, we are substantially
adding to our existing product portfolio in all
our businesses of agri-machinery, railway equipment
and auto components to cater to various niche markets"
Mr. Nanda further added, "To accommodate its ambitious
growth plans, the company is looking at raising
equity for retiring its remaining debts as the interest
cost has become dearer and also to meet its growth
capital for expansion. With continued emphasis on
core business lines, we have all the reason to look
at the future with renewed energy and confidence."
Infusion of Rs.750
million to meet Escorts’ ambitious growth
plans in its
construction equipment business
New Delhi, March 26, 2007: Darby Overseas
Investments, Ltd. (“Darby”), the private
equity arm of Franklin Templeton Investments and
a leading provider of private equity and mezzanine
capital in emerging markets has committed an investment
of Rs 750 million through an affiliate of its
Darby Asia Mezzanine Fund II (“DAMF II”)
in Escorts Construction Equipment Ltd. (“ECEL”),
the wholly owned subsidiary of Escorts and a leading
manufacturer of construction and material handling
equipment.
This investment by Darby provides ECEL with a
strong capital base to fund its ambitious expansion
plans and to meet the fast widening supply-demand
gap. Ramping up operations, ECEL is setting up
a state-of-the-art manufacturing facility spread
over 15 acres land at Ballabhgarh in Haryana.
The new facility, the land for which has already
been acquired, shall be used for enlarging its
product range in existing and newer domains.
Mr. Rajan Nanda, Chairman of Escorts,
said of the investment: “Mezzanine finance
is an attractive source of long-term capital for
us as we pursue our plans for growth and an increased
share of the overall market. We are very pleased
to take advantage of Darby’s broad experience
in mezzanine financing for companies such as ours.
With an established range of equipment to cater
to the demand consequent to the spectacular boom
in the construction and real estate industry and
with a new range of products in the pipeline,
we are today aptly poised at a very significant
growth opportunity of the decade.”
Richard H. Frank, Darby’s Chief
Executive Officer, commented: “We
were attracted to ECEL because of its pole position
within India’s rapidly expanding construction
equipment sector. In addition, ECEL fits well
into our investment strategy of supplying risk
capital to medium-sized companies with high quality
management and good growth prospects.”
About ECEL: The company was incorporated
in 1995 following a spin-off from its parent,
Escorts Limited, where ECEL operated as a division
manufacturing cranes. The pioneers and the largest
manufacturers of the Pick-n-Carry Cranes worldwide
and with over three decades of presence, ECEL
is a dominant player in the Material Handling,
Construction Equipment and Road Construction Equipment
sectors. It manufactures a wide range of Pick-n-Carry
Cranes, Slew Cranes, Loaders, Vibratory Soil Compactors
and Tandem Vibratory Rollers. ECEL also markets
& distributes world renowned brands in the
product categories of Fork Lift Trucks, Articulated
Boom Cranes, Tower and Crawler Cranes.
About Darby Overseas Investments:
Darby Overseas Investments was founded in 1994
by The Honorable Nicholas F. Brady, who served
as U.S. Secretary of the Treasury between 1988
and 1993. In 2003 Darby became a fully owned subsidiary
of Franklin Resources, Inc. [NYSE:BEN], a global
investment management organization operating as
Franklin Templeton Investments. Franklin Templeton
Investments provides global and domestic investment
management solutions managed by its Franklin,
Templeton, Mutual Series, Fiduciary Trust, and
Darby investment teams. The San Mateo, California-based
company has 60 years of investment experience
and approximately US$564 billion in assets under
management as of February 28, 2007. Darby’s
first Asia mezzanine fund was launched in 1998
and became fully invested in 2004 after investing
US$275 million. The firm has played a pioneering
role in bringing mezzanine – a hybrid of
both debt and equity – to emerging market
regions, initially in Latin America and Asia,
and more recently in Central and Eastern Europe.
Kamal Bali joins as CEO, Escorts Construction
Equipment Limited (ECEL) and Inderjit Singh as
Head-Knowledge Management Center of Agri Machinery
Group (AMG)
New Delhi, February 6, 2007- Escorts, India's
leading manufacturer and supplier of Agri Machinery
Products, Construction and Material Handling Equipment,
Auto Suspension and Ancillary Products and Railway
Equipment, today announced key appointments at
top levels in its two group companies.
Mr. Kamal Bali joins as CEO, Escorts Construction
Equipment Limited (ECEL) Till recently
he was the Managing Director and CEO of the Italian
tractor manufacturing company Same Deutz-Fahr,
India. He had started his career with Eicher Limited.
Mr. Bali has also been associated with the Escorts
Group earlier and was looking after all India
sales for the Agri Machinery Group. On his appointment,
Mr. Rajan Nanda, the Chairman of Escorts said,
"The infrastructure Industry is witnessing spiralling
growth and we have a great opportunity on our
hands. We are confident that Mr. Kamal Bali with
his strong business orientation and leadership
capabilities will drive the position of ECEL to
that of a dominant player in the Construction
Equipment segment."
Mr. Inderjit Singh joins as Head - Knowledge
Management Center (KMC), Agri Machinery Group
Prior to joining Escorts Ltd, Mr. Inderjit Singh
was working as Vice President (R&D), Mahindra
& Mahindra (FES). He had developed the first indigenous
Turbocharged tractor and was the recipient of
M & M Innovation Award for cost effective transmission
design. Earlier, he has worked with Nisin Car
Industries as the Head of Engineering and followed
it with a stint in the R&D department of Punjab
Tractors. On his appointment, Mr Rajan Nanda,
the Chairman of Escorts said, "he brings with
him considerable and in-depth experience in new
product development process. As Head- KMC, he
will seamlessly integrate Knowledge Management
Process with the overall business strategy of
the agri machinery business to create value for
customers. His rich experience in the field of
automotive design will significantly improve our
competitive advantage."
New Delhi, January 25, 2007: Escorts Ltd. today
announced the Board of Director’s approval
for raising US$ 100 million Equity Linked Instrument
through Qualified Institutional Placement (QIP).
Whilst the company debt levels have reduced considerably,
the company would like to take more aggressive initiatives
in:
There is also a need to fund balancing capital investment.
The company is now proposing to take this up in
their Annual General Meeting on 24th February’07.
This enhancement of capital is at an opportune time
to gain more momentum in the business, as the capital
is required to support its robust plans of sales
growth and profit improvement.
While the Company has already begun Road Shows,
the shareholders’ approval for the issue of
the securities to QIBs is likely to be obtained
at the Annual General Meeting on 24th February 2007.
It is expected that the subscription of capital
will happen in early March 2007. The Company expects
this to result in improved profits through interest
cost reduction by more than Rs. 20 crores in the
current fiscal year.
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Q1 Turnover up 59% at Rs. 518
crs |
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Cash profit of Rs. 9.5 crs against
cash loss of Rs. 6.5crs up QoQ at 246%. |
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Improvement in PBT levels by
Rs 14.4cr |
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Tractor sales volume up at 13697
units, up by 65% |
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New Delhi, January 16, 2007: The re- energising
story of Escorts continued unabated in Q1 with a
remarkable turnaround in financial performance for
the first quarter ended (FY October 06- September
2007) with a sharp rise in Sales volumes and the
attendant positive EBIDTA.
The leading manufacturer of Tractors, Railway Equipment
and Auto Suspension Products has posted a 59 per
cent rise in turnover at Rs.518cr as compared to
Rs.326cr in the quarter ended December 2006.
Government support to emerging and innovative farm
practices across the country and strong export demand
have provided a boost to the agri-business and an
opportunity for Escorts' growth. Consequently, PBIDTA
is at Rs.27.68 crores representing a positive swing
of 84% as compared to Rs.15.04 crores in corresponding
quarter previous year.
The company has recorded a cash profit of Rs.9.5cr
during the quarter as compared to cash loss of Rs.6.55
crores in the same period of previous year. However,
the profit after tax is negative at Rs.3.04 crores
compared to profit of Rs.2.92 crores, same period
previous year which was primarily due to reversal
of certain tax provisions in the corresponding quarter
last year.
Mr. Nikhil Nanda (Executive Director & Group COO)
said, "With a lean cost structure, focussed lines
of business and dedicated efforts to make the best
of our people and resources, we are confident that
all our initiatives will contribute in our journey
to regain our leadership position in our areas of
operation."
Tractor sales volumes at 47,612 up 83% on
previous year annualised basis
Turnover at Rs 1750.76 crs, up 72% on previous year
annualised basis
EBIDTA from Operations Rs 107.30 crs vs. a loss
of Rs 8. 10 crs previous year annualised basis
Significant reduction in Interest cost to Rs 69.15
crs from Rs 113.14 crs previous year annualised
basis
Positive swing of Rs 160.64 crs in Operation Results
before Tax and Exceptional Items vs. previous year
on an annualised basis
New Delhi, December 21,2006: Escorts Ltd has staged
a remarkable turnaround for the year ended September
2006 with a sharp rise in Sales volumes and the
attendant positive EBIDTA.
The leading manufacturer of Tractors, Auto Suspension
Products and Railway Equipment has posted a 72 per
cent rise in turnover at Rs 1750 crs as compared
to Rs 1015 crs previous year annualised basis.
Clear Market and Business Focus was key to numerator
and denominator management whereby while market
access increased turnover, productivity management
contained costs. Thereby Operating EBIDTA was Rs
107.31 crs representing a positive swing of Rs 115.37
crs as compared to a loss of Rs 8.07 crs previous
annualised basis.
In turn, the positive EBIDTA yields Total Profit
before Tax of Rs 34.44 crs as compared to Rs 24.82
crs previous year annualised basis. According to
Mr Rajan Nanda, (Chairman, Escorts Ltd), "strong
GDP growth and a buoyant economy coupled with our
focused efforts in the Market Place and in our Operations,
were key in the remarkable turnaround at Escorts.
Sustained market growth and the company's resolve
to continuously innovate on Products & Services
would take the company to a pre-eminent position
in the Industry in the ensuing years'.
Mr Nikhil Nanda (Chief Operating Officer, Escorts
Ltd) said, "Concerted efforts by the Management
to unleash our potential and turnaround the Company
has begun paying rich dividends. The Management
is confident of leveraging talent and capability
as the Company reinvents itself to capitalise on
the Opportunities in the Market Place."
New Delhi, 15th September 2006: Escorts Limited
has signed an agreement with Carraro International
S.A., a group company of Carraro S.p.A. to divest
its 49% shareholding in Carraro India Limited,
a joint venture between Escorts Limited and Carraro
S.p.A. This divestment in turn would help Escorts
Limited realize Euro 20 million at the current
rate of exchange.
Escorts Limited intends to utilize the proceeds
of this divestment for repaying its debts and
thereby bringing down the interest costs to improve
the bottom line of the company. Earlier, staging
a turnaround, the net profit of Escorts Ltd. in
the 3rd quarter ended June 30, 2006 stood at Rs.1.57
crore compared to Net Loss of Rs.57.38 crore in
the corresponding period of the previous year.
The total income increased by 94.79% to Rs.478.50
crore during the quarter ended June 30, 2006 compared
to Rs.245.64 crore in the same period of the previous
year. Focusing on the long-term growth, the company
has been re-concentrating on its core businesses
of Agri Machinery, Auto Suspension and Ancillary
Products, Railway Equipment and Construction equipment.
Carraro S.p.A is a leading company in Europe for
transmissions, axles and gears. In 1997 Escorts
Ltd. and Carraro S.p.A. had entered into a joint
venture - Carraro India Limited for manufacturing
and supplying axles and transmissions to tractor
manufacturers both in India and overseas. While
the majority shareholding was by Carraro S.p.A.
in the joint venture, 49% was held by Escorts
Ltd. To use India as a supply base to the Asian
and International markets, Carraro S.p.A. had
been contemplating of having a fully owned company
in India. With Escorts Ltd. divesting its stake
in favour of Carraro International S.A., it will
help Carraro realise its plans. To support the
production plans of Escorts for the next 3 years
by supplying axles and transmissions, Escorts
Ltd. has entered into a supply agreement with
Carraro Group and expects to be a major buyer
of Carraro's axles and transmissions.
New Delhi, 13th September 2006: Escorts Limited
a leading manufacturer and supplier of Agri Machinery
Products, Auto Suspension, Ancillary Products
and Railway Equipment is setting up a manufacturing
facility, with an investment of Rs.25 crores,
at Integrated Industrial Estate, Pantnagar, Uttaranchal.
It will manufacture auto components and railway
equipment and add to its existing product portfolio.
The existing product offerings of the company
in auto components include Shock Absorbers, Telescopic
Front Forks and McPherson Struts. In railway equipment
it is mainly into the manufacture of Shock Absorbers
for Rolling Stock, Couplers for Sub-urban and
Mainline EMU trains, Braking Systems and Composite
Brake Blocks. These are currently being manufactured
in the facilities of the company in Faridabad,
Haryana.
Mr. Nikhil Nanda, Executive Director - Escorts
Ltd., said, "Considering the ample scope for volume
growth in both the sectors, we have been aiming
to further leverage our manufacturing strengths.
As part of our growth strategy, we would like
to have a much greater contribution from these
segments in our operations."
In the auto component sector the company has planned
to significantly widen its product portfolio.
It is also actively considering new partners and
new export markets for auto components. In railway
equipment, the company is foraying into the manufacture
of a range of new products for emerging segments
like Metros and New Technology Rolling Stocks.
With a project cost of Rs.25 crore, at the new
manufacturing facility in Pantnagar Escorts Limited
will be availing several incentives like:
Zero Excise duty instead of 16.32% for 10 years
i.e. upto March 2017
Central Sales Tax at 1% instead of 4%
Income Tax holiday - 100% for 1st five years
30%
for next five years
Uninterrupted power supply and Power tariff of
Rs.2.50 per unit
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