New Delhi: Farm equipment and engineering major Escorts Ltd on Tuesday reported nearly two-and-half fold increase in its standalone net profit to Rs77.56 crore for the second quarter ended 30 September, riding on robust sales.
The company had posted standalone net profit of Rs31.29 crore in the same period last fiscal, Escorts Ltd said in a BSE filing. Revenue from operations during the period under review stood at Rs1,211.69 crore. It was Rs982.7 crore in the same quarter last fiscal. The figures are not comparable due to goods and services tax (GST) implementation from July this year, the company said.
During the second quarter, tractor sales were up by 31.5% at 20,358 units, while sales of construction equipment grew by 34.3% to 972 units, it said. Revenue from the railway products division for the second quarter increased by 22.1% to Rs73.3 crore as against Rs60.1 crore in the year-ago quarter, Escorts said.
Commenting on the outlook, Escorts chairman Rajan Nanda said, “Sustained economic focus and support to farm mechanisation, agro innovation and smart city infrastructure is a strong push to the industry and market demand”. The company’s continued investments in technology, channel and product mix would continue to bring enhanced process efficiencies and business productivity, he added.
Escorts managing director Nikhil Nanda said with new products across businesses, Escorts was equipped to tap the emerging opportunities across agriculture, infrastructure and railway segments both for domestic and global demand. Shares of Escorts Ltd were trading at Rs755.15 apiece in the afternoon trade, down 2.21% from the previous close on BSE.