Escorts Quarter Sales Up By 16.7% At Rs.495 Crore
EBIDTA up 44% at Rs.29.69 crore
Profit Before Tax at 0.7 crore
Escorts Limited has registered a 16.7% increase in sales in the first quarter of fiscal 2008-09 ending December 31, 2008. Despite tight market conditions, Escorts Limited grew its sales for the quarter to Rs. 495 crore as against Rs.424 crore in corresponding period. Continuing its focus on improved earnings, the company recorded a 44% increase in EBIDTA at Rs.29.69 crore as against an EBIDTA of Rs. 20.64 crore in corresponding period.
The company registered a Profit Before Tax of Rs 0.7 crore against a loss of Rs 10.05 crore in the corresponding period. After providing for taxes, the company registered a lower net loss at Rs 0.34 crore against a net loss of Rs 5.93 crore in the corresponding period of previous fiscal.
During the quarter the company launched four-cylinder offering POWERTRAC 4455 (also PT 4455) specially designed keeping in mind the increased proliferation of tractor usage for specialized applications and heavy-duty implements & attachments. Powertrac 4455 offers a unique combination of "HIGH PRODUCTIVITY – FUEL EFFICIENCY". PT 4455 is positioned as India's No 1 economy tractor in the 55HP category and is ideal for all types of agriculture and non farm applications. The Construction Equipment Business introduced TRX 2319, the largest articulated Pick-n-carry crane in the world.
Speaking on the results, Chairman and Managing Director, Mr Rajan Nanda said, "The quarter results reaffirm the soundness of the strategic path being followed at Escorts Limited. In a market that is very different from the corresponding period of last fiscal, Escorts has reported improved performance across all parameters. We continue to build a robust and comprehensive portfolio of products offering price competitive models of global quality norms in terms of technology, performance and durability. Both, agri-machinery and the construction equipment business have seen the successful launch of new products. The Railways Equipment Division's business with the Government continues to grow."
"As per the current estimates, agriculture is expected to continue to grow at 4% plus despite the major slow down in the other sectors of Economy. However, the slowdown in the disbursal of farm-directed finance poses a big challenge. It is hoped that the government will step up the efforts to accelerate the lending and ensure that targets for priority sector finance are met," Mr Nanda said.
According to Joint Managing Director Mr Nikhil Nanda, "The gains of unyielding focus on the value builders of our core business are clearly evident in the current quarter. The significant increase in EBIDTA has been achieved through a concerted effort to drive down costs and enhance operational efficiencies through raw material rationalization and energy savings. With a top-class leadership at the helm of affairs, the efforts to be efficient and customer oriented will continue unabated."