Tractor manufacturer Escorts today reported over two-fold increase in its standalone net profit to Rs 26.9 crore for the quarter ended June 30, 2012, due to new launches, better product mix and low inventory costs.
The company had posted a net profit of Rs 13.2 crore in the corresponding quarter previous fiscal.
Standalone net sales of the company rose to Rs 858.9 crore in the quarter under consideration from Rs 728.9 crore in the same period year ago.
"The Industry is going through a very very tough time. However, with the help of new launches and a better product mix, we were able to register a healthy profit," Escorts Joint Managing Director Nikhil Nanda told PTI.
The company has launched five new products in the last four months that include its first four-wheel drive tractor too, he added.
Other factors like reduction of inventory costs and timely delivery of spare parts have also helped in improving the company's margins, Nanda said.
During the last quarter, sales volumes rose by 13.2% at 16,083 tractors as against 14,212 units in the corresponding quarter.
Commenting on the results Escorts Chairman and MD Rajan Nanda said: "The profitability in the third quarter is a combination of growth in sales, better margins and cost compression measures".
The performance shows the success of strategies that the company has adopted over the last two quarters, including launch of executive tractors, deepening of sales and distribution network and robust brand building, he added.
Shares of Escorts today closed at Rs 59.15 on BSE, up 1.02% from its previous close.