New Delhi, May 17, 2018
- Tractor volumes up by 26.1% at 80,417 units
- Construction Equipment volumes up by 35.3% at 4,486 units
- EBIDTA from continued operations up by 72.1% at ₹ 557.2 crore
- Profit from continued operations up by 71.4% at ₹ 344.7 crore
- Board recommends a dividend of 20%
Escorts Limited today reported consolidated profit of ₹ 346.6 crore in year ended March 31, 2018 up by 165 percent as against a profit of ₹ 130.8 crore in the previous fiscal and Standalone profit of ₹ 344.7 crore in year ended March 31, 2018 up by 114.9 percent as against a profit of ₹ 160.4 crore in the previous fiscal.
Profit for quarter ended March 2018 was up by 89.2 percent at ₹ 112.5 crore as against ₹ 59.5 crore in the corresponding quarter last year. The Board of Directors recommended a dividend of ₹ 2.0/- per share of face value ₹ 10/-, for 2017-18 as against the dividend of ₹ 1.5/- per share of face value of ₹ 10/- in 2016-17.
Speaking on the results, Chairman Mr. Rajan Nanda said, “Growing and much deserved focus on rural upliftment, farm mechanisation & agricultural infrastructure and urban smart ecosystem reflects in our growth across businesses. Government’s vision for doubling farmer’s income by 2022 & agriculture and adequate infrastructure including railway & metro network policies will further accelerate economic growth and opportunities. Escorts is well prepared and will actively contribute in national development and community welfare.”
According to Mr. Nikhil Nanda, Managing Director, Escorts Ltd, “We are in a continuous process to innovate and bring new and advance technology including electric and autonomous capabilities in our much-focused agriculture, urban smart infrastructure and safe railway transport segments. We have been successfully bringing in new initiatives and process efficiencies with better cost compression, better margins & strengthened customer connect. Our expanded product portfolio and technology upgrades has been expanding our International presence and domestic thought leadership. Our major thrust today is to integrate global best practices, imbibe and innovate futuristic techniques and product standards to address food security and mechanised infrastructure. Our massive transformative purpose of ‘Nation Matters’ will drive our efforts to further strengthen our customer touchpoints through digital capabilities, inspire global set-ups with our indigenous innovations and value driven offerings.
Segment Wise Performance
Escorts Agri Machinery
Tractor sales at 80,417 tractors up by 26.1% as against 63,786 tractors in previous fiscal. This was accompanied by significant improvement in EBIT margins which was up by 334 bps at 13.6% as compared to 10.3% in previous fiscal. For fourth quarter ended March’18 tractor volumes at 23,568 tractors up by 57.4% and EBIT margin at 15.1% up by 507 bps as against the previous fiscal same quarter.
Escorts Construction Equipment
Construction equipment sales at 4,486 units up by 35.3% as against 3,315 units in the previous fiscal. With ongoing cost reduction efforts, along with industry growth has resulted in positive swing of 420 bps in EBIT margins to 1.9% as against negative 2.3% in previous fiscal. For fourth quarter ended March’18 construction equipment volumes at 1,541 up by 48.6% and EBIT margin at 5.1% up by 301 bps as against the previous fiscal same quarter.
Railway Products Division
Railway division sales at ₹ 286.6 crore up by 18.2% as against ₹ 242.5 crore in the previous fiscal. EBIT margins up by 123 bps at 13.9% as against 12.7% in the previous fiscal. For fourth quarter ended March’18 sales at ₹ 76.0 crore up by 14.2% and EBIT margin at 15.9% up by 509 bps as against the previous fiscal same quarter. The current order book is around ₹ 350 crore and will be executed in the next 12-13 months.
The audited accounts of the 12 months ended March 2018 has been approved by the Board of Directors of Escorts Limited.
For further information, kindly contact:
Bharat Madan
Group CFO
Escorts Limited
Phone: +91 129 256 4838
Email: bharat.madan@escorts.co.in
