Escorts continues to surge ahead on firmly chalked out growth plans
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."