Escorts Limited reported a standalone profit of ₹ 104.6 crore in quarter ended September 30, 2019, up by 1.8 % as against a profit of ₹ 102.7 crore in the corresponding period last year. Revenue from operations at ₹ 1,323.9 crore in quarter ended September 2019 as against ₹ 1,398.4 crore in the corresponding period last year.
The standalone net profit for the first half year ending September 2019 at ₹ 192.1 crore as against a profit of ₹ 223.4 crore in the corresponding period last fiscal. Revenue from operations at ₹ 2,746.8 crore in first half ended September 2019 as against ₹ 2,909.6 crore in the corresponding period last fiscal.
Speaking on the results, Chairman and managing Director Nikhil Nanda said, "Our new products across business lines, investments in distribution for wider reach & enhanced customer experience with technology upgrades has helped us foray strong in the current industrial pace. Our continuous cost optimization initiatives will offer us additional leverage for stronger revenue, profitability & increased share of market. We will continue to invest in R&D to create value for our customers across domestic and export geographies."
SEGMENT WISE PERFORMANCE
Escorts Agri Machinery: Tractor sales were at 19,750 units in quarter ended September 2019 as against 20,553 units in the corresponding period last fiscal. Segmental revenue came at ₹ 995.6 crore in quarter ended September 2019 as against ₹ 1,043.3 crore in corresponding period last fiscal. This quarter on account of lower volume and unfavourable product mix, EBIT margins now stands at 10.3%.
For first half of current fiscal tractor volumes at 40,801 units as compared to 45,533 units in corresponding period last fiscal. Segmental revenue came at ₹ 2,087.7 crore in half year ended September 2019 as against ₹ 2,220.5 crore in corresponding period last fiscal. EBIT margin for first half of fiscal at 10.6% as compared to 14.4% in the corresponding period last fiscal.
Escorts Construction Equipment: 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 ₹ 201 crore in quarter ending September 2019 as against ₹ 249.1 crore in corresponding period last fiscal. EBIT margin went up by 195 bps to 2.7% as against 0.7% in corresponding period last fiscal.
For first half of current fiscal construction equipment volumes at 2,012 units as compared to 2,676 units in corresponding period last fiscal. Segmental revenue came at ₹ 413.2 crore in half year ended September 2019 as against ₹ 495.1 crore in corresponding period last fiscal. EBIT margin for first half of fiscal went up by 105 bps to 2.6% as compared to 1.6% in the corresponding period last fiscal.
Railway Products Division: Revenue for the second quarter up by 19.6% at ₹ 126.7 crore as against ₹ 105.9 crore in the corresponding quarter. This quarter we have higher sales from new products and now EBIT margin stands at 19.1 % in quarter ended September'19.
For first half of current fiscal railways products segmental revenue went up by 26.2 % to ₹ 244.8 crore in half year ended September 2019 as against ₹ 194.01 crore in corresponding period last fiscal. EBIT margin for first half of fiscal at 19.5% as compared to 22.4% in the corresponding period last fiscal.
Order book for the division as at end of September'19 is around ₹ 500 crore that will get executed in the next 12~15 months.
The reviewed accounts of the second quarter and First six months ended 30th September 2019 has been approved by the Board of Directors of Escorts Limited.
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