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Resurgence at Escorts Ltd

Tractor sales volumes at 47,612 up 83% on previous year annualised basis

Turnover at Rs 1750.76 crs, up 72% on previous year annualised basis

EBIDTA from Operations Rs 107.30 crs vs. a loss of Rs 8. 10 crs previous year annualised basis

Significant reduction in Interest cost to Rs 69.15 crs from Rs 113.14 crs previous year annualised basis

Positive swing of Rs 160.64 crs in Operation Results before Tax and Exceptional Items vs. previous year on an annualised basis

New Delhi, December 21,2006: Escorts Ltd has staged a remarkable turnaround for the year ended September 2006 with a sharp rise in Sales volumes and the attendant positive EBIDTA.

The leading manufacturer of Tractors, Auto Suspension Products and Railway Equipment has posted a 72 per cent rise in turnover at Rs 1750 crs as compared to Rs 1015 crs previous year annualised basis.

Clear Market and Business Focus was key to numerator and denominator management whereby while market access increased turnover, productivity management contained costs. Thereby Operating EBIDTA was Rs 107.31 crs representing a positive swing of Rs 115.37 crs as compared to a loss of Rs 8.07 crs previous annualised basis.

In turn, the positive EBIDTA yields Total Profit before Tax of Rs 34.44 crs as compared to Rs 24.82 crs previous year annualised basis. According to Mr Rajan Nanda, (Chairman, Escorts Ltd), "strong GDP growth and a buoyant economy coupled with our focused efforts in the Market Place and in our Operations, were key in the remarkable turnaround at Escorts. Sustained market growth and the company's resolve to continuously innovate on Products & Services would take the company to a pre-eminent position in the Industry in the ensuing years'.

Mr Nikhil Nanda (Chief Operating Officer, Escorts Ltd) said, "Concerted efforts by the Management to unleash our potential and turnaround the Company has begun paying rich dividends. The Management is confident of leveraging talent and capability as the Company reinvents itself to capitalise on the Opportunities in the Market Place."

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