Escorts’ consolidated net profit fell by 32.36% to Rs 193.71 crore on a 2.83% drop in operating income to Rs 1,984.28 crore in Q3 Dec 2021 compared to Q3 Dec 2020.

Consolidated profit before tax (PBT) slipped by 31.60% to Rs 261.62 crore in Q3 FY22 from Rs 382.49 crore in Q3 FY21.

On a stand-alone basis, net profit decreased by 28.19% to Rs 201.52 crore on a 2.97% decline in operating income to Rs 1,957.49 crore in Q3 FY22 compared to Q3 FY21. EBITDA was down 27.3% to Rs 264.60 crore in Q3 FY22 compared to Q3 FY21. EBITDA margin fell 453 basis points year-over-year to 13.5% in the quarter.

Tractor volumes fell 19.8% year-on-year to 25,325 units in Q3 FY22 compared to Q3 FY21. Construction volumes fell 8.2% year-on-year to 1,151 units in Q3 December 2021 compared to Q3 December 2020. Railway revenues increased 48.1% year-on-year to 173.90 crores of rupees in Q3 FY22 compared to Q3 FY21.

In the Escorts Agri Machinery segment, for the three months ended December 2021, tractor volumes were 25,325 units, up 20.2% sequentially and down 19.8% year-on-year from 31,562 units in the corresponding quarter. Segment revenue was Rs 1,505.60 crore in the quarter ended December 2021, increased by 21.3% from Rs 1,240.90 crore in the sequential quarter but decreased by 8.9% year-on-year from Rs 1,652.70 crore in the corresponding quarter. Segment EBIT margin improved 76 basis points to 15.8% from 15.1% in the sequential quarter, but due to high raw material price inflation and lower volumes declined by 432 basis points, compared to 20.1% in the corresponding quarter.

In the Escorts Construction Equipment segment, for the quarter ended December 2021, construction equipment sales volume was 1,151 machines, up 7.2% from 1,074 machines in the sequential quarter, but down 8.2% compared to 1,254 machines in the corresponding quarter. Segment revenue was Rs 276.20 crore in the quarter ending December 2021, up 10.8% from Rs 249.20 crore in the sequential quarter and up 12.9% year-on-year from Rs 244.7 crore in the corresponding quarter. Due to high commodity price inflation, the segment’s EBIT margin of 2.5% decreased 114 basis points sequentially and 509 basis points from 7.5% in the corresponding quarter of last year .

In the Railway Products Division segment, for the quarter ended December 2021, the Railway Products Division achieved its highest quarterly revenue at Rs 173.9 crore, up 2.2% from Rs 170.20 crore in the sequential quarter and up 48.1% year-on-year from Rs 117.40 crore in the corresponding quarter. Due to unfavorable raw material prices, the segment’s EBIT margin was 14.3%, down 296 basis points from 17.3% in the sequential quarter and up 164 basis points from 12, 7% in the corresponding quarter. The division’s backlog as of end of December 2021 was over Rs 400 crore.

Speaking on the quarterly results, Nikhil Nanda, President and Chief Executive Officer (MD) of Escorts, said: “The tractor industry has now been impacted for two consecutive quarters due to the high base last year. , from the delayed harvest of Kharif crops due to This year’s monsoon rains have affected rural cash flow and retail demand Going forward, we expect cash flow to improve due to better Kharif purchases and a positive outlook with good Rabi plantings.Although high inflation remains a concern, we hope that the favorable macro economic factors for agriculture will stimulate rural demand.We continue to invest in developing new products and expanding distribution to deliver enhanced reach and customer experience in domestic and global markets Multiple government initiatives in agriculture and infrastructure development will be helpful in creating opportunities across our agriculture, construction and rail portfolio.”

Shares of Escorts rose 1.08% to Rs 1,843.30 on BSE. The Escorts Group is an Indian engineering company that operates in the agricultural machinery, construction and material handling equipment and railway equipment sectors.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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