Escorts Half Year net Profit up 767% to Rs 64.87 Crore
New Delhi, April 22, 2010
Half year Sales up by 30.2% at Rs. 1272 crore
Quarter Net Profit grows 430% to Rs. 41.47 crore
Quarter Sales rise by 39.5% to Rs. 672 crore
Quarter EBITDA shoots 84.2% to Rs. 66.09 crore
ICRA has recently upgraded Escorts rating
Escorts Limited today reported a higher profit of Rs. 64.87 crore for the half year ended March 31, 2010, a 767% increase over Rs 7.48 crore registered for the corresponding period of last fiscal. The Profit Before Tax (PBT) stood at Rs. 87.14 crore for the half year, as against a profit of Rs.16.46 crore in the corresponding period. Total half yearly sales and income from operations rose to Rs. 1272 crore from Rs. 977 crore in the previous year. The company reported a cash profit of Rs.114.34 crore as against Rs. 36.85 crore in the corresponding period. Escorts Limited follows an October-September fiscal year.
For the quarter ending March 31, 2010, Escorts Limited registered a higher profit of Rs. 41.47 crore, an increase of 430% against Rs. 7.82 crore in the previous year. Total sales and income from operations for the quarter rose 39.5% to Rs. 672 crore against 482 crore in the previous year. The company closed the quarter with Profit Before Tax (PBT) standing at Rs.51.69 crore against Rs. 15.76 crore recorded in the corresponding period of last fiscal. EBITDA increased by 84.2% to Rs. 66.09 crore against Rs. 35.89 crore in previous fiscal.
During the quarter, Escorts Limited registered Tractor sales of 14, 623 units, a 51.2% increase over 9,672 units sold in corresponding quarter last fiscal enabled through streamlining of sales & marketing on the ground. During the quarter, Escorts launched FT-60 X-TRA TORQUE, a new powerful model with higher torque in Punjab and Haryana. The FT-60 X-TRA TORQUE is designed keeping in mind the increasing use of tractors for specialized application and heavy-duty implements & attachments.
Speaking on the results, Chairman and Managing Director Mr Rajan Nanda said, "Escorts has recorded strong performance across all parameters this quarter. The company is consistently enhancing shareholder value through growth initiatives, fiscal prudence and innovative strategies. We are leveraging our ability to engineer technology to chart a growth path that spans a wider canvas of economic activity across agriculture and infrastructure sector. Escorts today has created a strong platform for growth and enhancing shareholder value."
According to Joint Managing Director Mr Nikhil Nanda, "Escorts' journey of sustained and profitable growth accelerated this quarter. Driven by the twin focus of winning in the market and efficiency, Escorts financial performance continues to gain momentum quarter after quarter. In comparison to the previous quarter of this current fiscal, profit is up by 77.2%, net sales is up by 11.9% and tractor sales volumes are up by 7.8% for the quarter ending March 31."
"On a year to year basis, for the quarter ending March 31, 2010, cash Profits have grown over 3 times during the quarter and EBITDA is up 84.2% to Rs 66.09 crore. Combining a lean and learning culture with strong engineering capabilities, Escorts is geared to capitalize on the emerging opportunities in agriculture and infrastructure sector", Mr Nikhil Nanda added.