Escorts Half Year Net Profit Up At Rs 7.48 Crore
Half year PBT up at Rs 16.46 crore
Quarter PBT at Rs 15.76 crore
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."