Escorts Q3 net jumps over two-fold to Rs 45 cr

Farm and construction equipment major Escorts  today reported over two-fold jump in net profit for the quarter ended June 30 at Rs 45.84 crore against Rs 22.2 crore in the year-ago period.

Net sales rose to Rs 806 crore, a 38.5 per cent increase from Rs 582 crore in the previous year, the company said in a statement.

Escorts follows an October-September fiscal year.

Commenting on the results, Escorts Chairman and Managing Director Rajan Nanda said: "Our liquidity has improved, interest costs have fallen substantially and debt:equity ratio is attractive."

The company is consistently enhancing shareholder value through growth initiatives, fiscal prudence and innovative strategies, he added.

During the quarter, Escorts sold 17,917 units of tractors, a 39 per cent increase over 12,889 units in the same quarter last fiscal.

The company also launched its new tractor variant Powertrac 429 (PT429), with a 27 HP, two cylinder engine during the three months period.

Besides this, the construction equipment business of the company introduced its backhoe loader – DIGMAX, as part of its strategy to expand its product portfolio to address larger share of the construction equipment market, it added.

Commenting on future plans, Nanda said: "We will be investing in Agri machinery business to expand capacity and develop new technology. We plan to launch 6-7 new products which are best suited for specialised application needs of the farmer."

He, however, did not specify the timeline for launching the new products.