Escorts Ltd. has reported its highest-ever standalone quarterly profit of ₹ 229.9 crore in the quarter ended September 30, 2020 (Q2), more than doubling its profit of ₹ 104.6 crore in the corresponding period last year. Revenue from operations stood at ₹ 1,639.7 crore in Q2 this year, up by 23.9% from ₹ 1,323.9 crore in the corresponding period last year.
The standalone net profit for the first half year ending September 2020 at ₹ 322.1 crore was up by 67.7% as against a profit of ₹ 192.1 crore in the corresponding period last fiscal. Revenue from operations was at ₹ 2,701.3 crore in first half ended September 2020 as against ₹ 2,746.8 crore in the corresponding period last fiscal.
At a consolidated level, revenue from operations was at ₹ 2,743.4 crores as against ₹ 2,774.2 cores in first half year ending September 2020. Consolidated net profit recorded at ₹ 319.8 crore in first half ended September 30, 2020, was up by 69%, as against a profit of ₹ 189.2 crore in corresponding period last fiscal.
Commenting on the results, Nikhil Nanda, Chairman and Managing Director, Escorts, said: “The Agri sector has been on an unprecedented boom. Maintaining highest safety measures and working closely with our partners to work around supply chain challenges, the demand for our tractors has so far outpaced our supplies. We think the momentum in Agri sector will continue supported by positive macro-economic factors. We also hope that supply chain challenges would subside after a month or so. We have also started witnessing some positive development in the construction and railway equipment space now and hopefully we will see a full recovery soon. In all our business segments, we are optimistic for the coming quarters.”
Segment-wise Performance
Escorts Agri Machinery
Tractor volumes were up by 23.8% at 24,441 units in quarter ended September 2020 as against 19,750 units in the corresponding period last fiscal. Segmental revenue went up by 32.8% at ₹ 1,322.2 crore in quarter ended September 2020 as against ₹ 995.6 crore in corresponding period last fiscal. This quarter favourable product mix, operating leverage and various cost reduction initiatives.
For the first half of current fiscal, tractor volumes went up by 4.4% at 42,591 units as compared to 40,801 units in corresponding period last fiscal. Segmental revenue also went up by 9 % at ₹ 2,275.7 crore in half year ended September 2020 as against ₹ 2,087.7 crore in corresponding period last fiscal.
Escorts Construction Equipment
Construction equipment sales volume for the quarter ended September 2020 were at 821 machines as against 945 machines in corresponding period last fiscal. Segmental revenues came at ₹ 156.9 crore in quarter ending September 2020 as against ₹ 201.0 crore in corresponding period last fiscal.
For first half of current fiscal, construction equipment volumes were at 1,055 units as compared to 2,012 units in corresponding period last fiscal. Segmental revenue came at ₹ 209.4 crore in half year ended September 2020 as against ₹ 413.2 crore in corresponding period last fiscal.