Escorts Re-Energising Gains Further Momentum
Q1 Turnover up 59% at Rs. 518 crs
Cash profit of Rs. 9.5 crs against cash loss of Rs. 6.5crs up QoQ at 246%.
Improvement in PBT levels by Rs 14.4cr
Tractor sales volume up at 13697 units, up by 65%
New Delhi, January 16, 2007: The re- energising story of Escorts continued unabated in Q1 with a remarkable turnaround in financial performance for the first quarter ended (FY October 06- September 2007) with a sharp rise in Sales volumes and the attendant positive EBIDTA.
The leading manufacturer of Tractors, Railway Equipment and Auto Suspension Products has posted a 59 per cent rise in turnover at Rs.518cr as compared to Rs.326cr in the quarter ended December 2006.
Government support to emerging and innovative farm practices across the country and strong export demand have provided a boost to the agri-business and an opportunity for Escorts' growth. Consequently, PBIDTA is at Rs.27.68 crores representing a positive swing of 84% as compared to Rs.15.04 crores in corresponding quarter previous year.
The company has recorded a cash profit of Rs.9.5cr during the quarter as compared to cash loss of Rs.6.55 crores in the same period of previous year. However, the profit after tax is negative at Rs.3.04 crores compared to profit of Rs.2.92 crores, same period previous year which was primarily due to reversal of certain tax provisions in the corresponding quarter last year.
Mr. Nikhil Nanda (Executive Director & Group COO) said, "With a lean cost structure, focussed lines of business and dedicated efforts to make the best of our people and resources, we are confident that all our initiatives will contribute in our journey to regain our leadership position in our areas of operation."