Escorts Q3 results: Consolidated net profit falls 32% to Rs 194 cr

Escorts Ltd on Tuesday reported 32 per cent year-on-year decline in consolidated net profit at Rs 194 crore in the quarter ended 31 December 2021. The company had posted a net profit of Rs 287 crore in the year-ago period. 

Sequentially, the net profit was up 12 per cent from Rs 173 crore.

The company's consolidated revenue from operations was down nearly 3 per cent to Rs 1,984 crore in reporting quarter as against Rs 2,042 crore in the same quarter last fiscal.

Escorts' standalone quarterly profit  stood at Rs 201.5 crore in quarter ended December 2021, up by 14 per cent as against a profit of Rs 176.7 crore in sequential quarter and down by 28.2 per cent as against a profit of Rs 280. 7 crore in the corresponding quarter. 

Further, for quarter ended December 2021, Tractor volumes at 25,325 units went up by 20.2 per cent sequentially and were down by 19.8 per cent as against 31,562 units in the corresponding quarter. 

As for Escorts construction equipment, the said quarter sales volume grew by 7.2 per cent at 1, 151 machines as against 1,074 machines in sequential quarter but were down by 8.2 per cent as against 1,254 machines in corresponding quarter. 

The Railway Product Division segment achieved its highest ever quarterly revenue at Rs 173.9 crore up by 2.2 per cent against Rs 170.2 Crore in sequential quarter and also up by 48.1 per cent against Rs 117.4 crore in corresponding quarter. 

"We are now witnessing good traction in tendering process. Order book for the division, at end of December 2021, was more than Rs 400 crore," the company stated in a regulatory filing.

Speaking on the results, Chairman and managing Director  Nikhil Nanda said, "The tractor industry has now been impacted for two consecutive quarters due to high base of last year, delayed harvest of Kharif crops owing to late monsoon rains this year which affected the rural cash flows and the retail demand." 

"Going forward, we do expect cash flows to improve with better Kharif procurement and positive outlook with good Rabi sowing. While high inflation remains a concern, we are hopeful of macro- economic factors to be in favour of agriculture to boost rural demand," he added. 

Shares of Escorts Ltd on Tuesday traded 0.65 per cent up at Rs 1,835.50 apiece on BSE during late trade hour.