Business Standard

Escorts net falls 75% on weak tractor sales

BS Reporter 

Agriculture and construction-related products manufacturer on Thursday reported a 75 per cent fall in net profit at Rs 18.12 crore for the quarter ended March 31, against Rs 73.2 crore in the same quarter last year.

The agri machinery products division of the company, which generates nearly 90 per cent of its turnover, suffered during the quarter due to weak demand for tractors. Auto ancillary products and railway equipment make the balance of its portfolio. Net sales fell 11 per cent to Rs 791 crore from Rs 889 crore.

While its market share for the quarter in the tractor segment rose 11.9 per cent, sales dipped by 3.9 per cent on a sequential basis. The tractor industry continued to slide in the first four months of the 2012 calendar year. "The second half of the year is traditionally better for the industry and we are expanding our reach and product portfolio to enter new markets and new market segments. We are also looking forward to the completion of our merger process within the financial year, which would change the dynamics of the Group for its shareholders, customers and associates,” said Rajan Nanda, chairman and managing director.

A tax gain of Rs 33 crore was reported in the corresponding quarter of last year, which boosted its net profit. The same was realised at Rs 5.6 crore during the quarter.

RECOMMENDED FOR YOU

Escorts net falls 75% on weak tractor sales

Agriculture and construction-related products manufacturer Escorts on Thursday reported a 75 per cent fall in net profit at Rs 18.12 crore for the quarter ended March 31, against Rs 73.2 crore in the same quarter last year.

Agriculture and construction-related products manufacturer on Thursday reported a 75 per cent fall in net profit at Rs 18.12 crore for the quarter ended March 31, against Rs 73.2 crore in the same quarter last year.

The agri machinery products division of the company, which generates nearly 90 per cent of its turnover, suffered during the quarter due to weak demand for tractors. Auto ancillary products and railway equipment make the balance of its portfolio. Net sales fell 11 per cent to Rs 791 crore from Rs 889 crore.

While its market share for the quarter in the tractor segment rose 11.9 per cent, sales dipped by 3.9 per cent on a sequential basis. The tractor industry continued to slide in the first four months of the 2012 calendar year. "The second half of the year is traditionally better for the industry and we are expanding our reach and product portfolio to enter new markets and new market segments. We are also looking forward to the completion of our merger process within the financial year, which would change the dynamics of the Group for its shareholders, customers and associates,” said Rajan Nanda, chairman and managing director.

A tax gain of Rs 33 crore was reported in the corresponding quarter of last year, which boosted its net profit. The same was realised at Rs 5.6 crore during the quarter.

image
Business Standard
177 22

Escorts net falls 75% on weak tractor sales

Agriculture and construction-related products manufacturer on Thursday reported a 75 per cent fall in net profit at Rs 18.12 crore for the quarter ended March 31, against Rs 73.2 crore in the same quarter last year.

The agri machinery products division of the company, which generates nearly 90 per cent of its turnover, suffered during the quarter due to weak demand for tractors. Auto ancillary products and railway equipment make the balance of its portfolio. Net sales fell 11 per cent to Rs 791 crore from Rs 889 crore.

While its market share for the quarter in the tractor segment rose 11.9 per cent, sales dipped by 3.9 per cent on a sequential basis. The tractor industry continued to slide in the first four months of the 2012 calendar year. "The second half of the year is traditionally better for the industry and we are expanding our reach and product portfolio to enter new markets and new market segments. We are also looking forward to the completion of our merger process within the financial year, which would change the dynamics of the Group for its shareholders, customers and associates,” said Rajan Nanda, chairman and managing director.

A tax gain of Rs 33 crore was reported in the corresponding quarter of last year, which boosted its net profit. The same was realised at Rs 5.6 crore during the quarter.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard