FCC

Escorts Q2 profit up

2019-11-04

Escorts reported a standalone profit of Rs 1.046 billion in quarter ended September 30, 2019, up by 1.8 per cent as against a profit of Rs 1.027 billion in the corresponding period last year. Revenue from operations at Rs 13.239 billion in the quarter ended September 2019 as against Rs 13.984 billion in the corresponding period last year. The standalone net profit for the first half of the year ending September 2019 was at Rs 1.921 billion as against a profit of Rs 2.234 billion in the corresponding period last fiscal. Revenue from operations was at Rs 27.468 billion in first half ended September 2019 as against Rs 29.096 billion in the corresponding period last fiscal.

Speaking on the results, Nikhil Nanda, Chairman and Managing Director, Escorts Group said, ?Our new products across business lines, investments in distribution for wider reach and enhanced customer experience with technology upgrades has helped us foray strong in the current industrial pace. Our continuous cost optimisation initiatives will offer us additional leverage for stronger revenue, profitability and increased share of market. We will continue to invest in R&D to create value for our customers across domestic and export geographies.?

Construction equipment sales volume for the quarter ended September 2019 were 945 machines as against 1,331 machines in corresponding period last fiscal. Segmental revenues came at Rs 2.01 billion in quarter ending September 2019 as against Rs 2.491 billion in corresponding period last fiscal. EBIT margin went up by 195 bps to 2.7 per cent as against 0.7 per cent in corresponding period last fiscal.

For first half of the current fiscal, construction equipment volumes at 2,012 units as compared to 2,676 units in corresponding period last fiscal. Segmental revenue came at Rs 4.132 billion in half year ended September 2019 as against Rs 4.951 billion in the corresponding period last fiscal. EBIT margin for first half of fiscal went up by 105 bps to 2.6 per cent as compared to 1.6 per cent in the corresponding period last fiscal.