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New Delhi, April 22, 2008
New Delhi, March 11, 2008
Hyderabad, February 09, 2008
New
Delhi, 4th February 2008
New Delhi,
26th November 2007
New Delhi,
14th November 2007
New Delhi, 19th
September 2007
New Delhi,
31th July 2007
Faridabad,
17th May 2007
New
Delhi, April 26, 2007
New
Delhi, March 26, 2007
New Delhi, February
6, 2007
New
Delhi, January 25, 2007
New Delhi,
January 16, 2007
New
Delhi, December 21,2006
New
Delhi, 15th September 2006
New Delhi, 13th
September 2006
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)
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Turnover higher by 29.6% at Rs 1607 crs
vs Rs 1240 crs prev year. |
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Oct/Jun TIV growth stands at 3%. Escorts
sales volumes higher by 23.6% at 41,357 units. |
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Cash Profit Rs.36.71 crs. vs. 24.29 crs.
prev year. |
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Turnover higher by 8% at Rs.515 crs. vs.
Rs.478 crs. prev year. |
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Apr/Jun Tractor Industry Volumes (TIV) registers
a sharp de-growth (-) 7%. Escorts sales volumes
are marginally lower by 2% at 12,865 units.
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Cash Profit Rs.4.33 crs. vs. Rs.16.28 crs.
prev year. |
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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. |
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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
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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.
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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.
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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".
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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.
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Q2 Turnover up 32% at Rs. 574 cr |
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Cash profit up by 57% at Rs. 22.81 cr |
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Improvement in PAT levels by Rs 22.89 cr |
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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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