Escorts Q1 net profit slips 27 pc to Rs 87.6 crore

Tractor manufacturer Escorts Ltd has reported a decline of 27.6 per cent in its profit after tax to Rs 87.66 crore during the quarter ended June 30 in comparison to Rs 121 crore in the corresponding quarter last fiscal.

The revenue from operations slipped 5.8 per cent to Rs 1,440 crore in Q1 FY20 against Rs 1,529.01 crore during Q1 FY19. Earnings before interest, taxes, depreciation, and amortisation (EBIDTA) was at Rs 142 crore against Rs 185 crore in the quarter ending June 2018. Earnings per share worked out to Rs 7.32 as against Rs 10.10 in the corresponding quarter of previous fiscal.

Escorts sold 21,051 tractors during the June quarter of ongoing financial year, the company said in a statement, down 14 per cent in comparison to sales in the June quarter of the last fiscal. The company sold 1,067 construction machines as against 1,345 in quarter ended June 2018.

"Escorts has been treading aligned to expectations across agri machinery, construction and railway businesses," said Chairman and Managing Director Nikhil Nanda.

"Tractor industry has been slowing down since the last few months. Thus our endeavour is to keep revenue and profitability intact with strategic initiatives and elimination of waste and inefficiencies. We will continue to invest in critical new products and technologies, efficient and diversified distribution which will enable us to increase our market share across domestic and export markets," he said in a statement.

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