Escorts Q2 net profit at Rs 16 crore

Tractor maker Escorts today posted a net profit of Rs 16.18 crore for the second quarter ended September 30.

The company had posted a net loss of Rs 7.85 crore in the corresponding quarter in the previous fiscal.

Net sales of the company declined to Rs 797.83 crore during the second quarter, as against Rs 986.60 crore in the same period of previous fiscal, Escorts Ltd said in a statement.

Commenting on the results, Escorts Chairman Rajan Nanda said the tractor industry has been adversely impacted by the poor and uneven monsoon.

"There is farm distress that is getting reflected in the overall industry recording steep drop in tractor sales though there are indications that the second half will show better results," he added.

Escorts, Managing Director, Nikhil Nanda said the focus continues to be maintaining profitability through growth and cost management.

"The focus for the second half of this fiscal will be to consolidate markets, strengthen presence in existing geographies while expanding reach in new segments and markets," he added.

Escorts shares were trading at Rs 173 apiece on the BSE, down 1.73 per cent from previous close.