Escorts record nearly twice jump in first quarter net profit to Rs 178.45 cr
On Thursday, Escorts Ltd, the large agricultural and engineering equipment company, announced a consolidated net profit of nearly double the Rs 178.45 crore in the first quarter ended June 30, 2021, thanks to strong sales in the agricultural machinery segment.
The company had posted a consolidated net profit of Rs 92.58 crore in the same quarter last year, Escorts Ltd said in a regulatory filing.
Consolidated turnover from operations during the quarter under review amounted to Rs 1,701.79 crore compared to Rs 1,089.26 crore during the period last year, he said. added.
Tractor sales volume amounted to 25,935 units for the quarter ended June 2021, compared to 18,150 units in the corresponding period of the previous fiscal year, a growth of 42.9%, the report said. company.
The agricultural equipment segment recorded revenues of Rs 1,436.30 crore in the first quarter, compared to Rs 976.71 crore in the corresponding period of the previous fiscal year, he said.
Vertical construction equipment generated revenue of Rs 140.82 crore, compared to Rs 52.49 crore in the first quarter of last year.
Construction equipment sales volume was 606 machines for the quarter, up 159% from 234 machines for the same period last year.
Commenting on the performance, President and CEO of Escorts Ltd, Nikhil Nanda, said: “The unlock has helped to strengthen demand, facilitate transport and logistics and improve the supply chain in farming communities for create a positive industrial dynamic … “
He added: “We certainly hope that with the sustained efforts of the government, the tractor and agricultural equipment industry and the construction equipment industry will return to the path of growth.”
While the company is also witnessing encouraging developments in the area of railway equipment, Nanda said, “It may take some time to come out of the impact of the current environment and return to business levels. before Covid “.
Escorts Ltd said the railway equipment division’s revenue for the first quarter rose 117.5 percent to Rs 119.4 crore from Rs 54.9 crore in the corresponding quarter a year ago.
“Indian railways are still not fully functioning, due to an unprecedented COVID-19 pandemic and have reduced their annual production rate, affecting tenders and order intake,” the company said .
The division’s backlog at the end of June 2021 was over Rs 300 crore and in the future “with government security measures and the vaccination campaign resuming at a rapid pace, we are expect the tendering process to return to pre-COVID level in the current fiscal year. “
Nanda said that while the respective states are gradually activating Controlled Unlocks, Escorts are extremely careful and follow all safety guidelines.
“The well-being and safety of our customers, resellers, suppliers and our employees remain our top priority. We have made vaccination easy for all of our employees and are working closely with our distribution base to support vaccinations in dealerships and customers as well as in local communities, ”he added.
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Posted on: Thursday August 05, 2021, 4:00 p.m. IST