Tractor sales volume of Escorts Agri Machinery (EAM) for the quarter ended June 2020 were 18,150 tractors as against 21,051 tractors in the corresponding period last fiscal. Segmental revenues came at Rs 953.5 crore in quarter ending June 2020 as against Rs 1,092.0 crore in the corresponding period last fiscal. Despite lower volumes, earnings before interest and taxes (EBIT) margins for agriculture machinery business went up by 356 bps to 14.5 percent against 10.9 percent last year same quarter due to improved product mix, lower costs and continued soft commodity prices.
Escorts Limited reported net profit of Rs 92.2 crore in quarter ended June 30, 2020, up by 5.3 percent, as against a profit of Rs 87.5 crore in corresponding quarter of the previous fiscal and as against Rs 140.4 crore in sequential quarter.
Speaking on the results, Nikhil Nanda, Chairman and Managing Director, said, “Rural demand in agriculture has been encouraging and government’s focus will aid to the sector in helping farming to continue the momentum. Amidst the challenging environment, while we have witnessed faster revival in our agriculture business this quarter, our construction and railway business have been impacted because of lockdown and related issues across geographies.
“Hopefully, we will see a recovery soon as the current market situation gets better and the economy across layers improves. We are optimistic for the coming quarters and hope that the collective efforts will help in containing the crisis and the global economy will be on its strength soon again, Nanda added.
Revenue from operations came at Rs 1,061.6 crore as against Rs 1,423 cores in corresponding quarter and Rs 1,380.7 crore in sequential quarter. Earnings before interest, taxes, depreciation, and amortisation (EBIDTA) for the quarter ended June 30, 2020 was at Rs 119.6 crore against Rs 142.4 crore in quarter ending June 2019. EPS reported at Rs 7.71 as against Rs 7.32 in corresponding quarter and Rs 11.75 in sequential quarter.
At consolidated level revenue from operations at Rs 1,089.3 crore as against Rs 1,440.5 crore in corresponding quarter. Consolidated net profit recorded at Rs 92.6 crore in quarter ended June 30, 2020, up by 5.6 percent, as against a profit of Rs 87.7 crore in corresponding period last fiscal.
Due to unprecedented COVID-19 pandemic situation during this period, the financials for the quarter ended June 2020 do not represent normal operations and to that extent are not strictly comparable with any normal quarter, the company has said.