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Escorts Q3 net profit surges by 139% to Rs. 22 Crore

Quarter Net Sales at Rs 582 crore; Year on Year growth of 10%
Quarter Profit Before Tax (PBT) up by 189% at Rs 41 crore
EBIDTA for the Quarter increases by 54% to Rs 63 crore
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."