Escorts gains after good Q2 results

The result was announced after market hours on Thursday, 10 May 2013.

Meanwhile, the BSE Sensex was up 58.70 points, or 0.29%, to 19,997.74.

On BSE, 1 lakh shares were traded in the counter as against an average daily volume of 1.36 lakh shares in the past one quarter.

The stock hit a high of Rs 67.75 and a low of Rs 66.35 so far during the day. The stock had hit a 52-week high of Rs 76.80 on 9 January 2013. The stock had hit a 52-week low of Rs 48.35 on 28 March 2013.

The stock had outperformed the market over the past one month till 9 May 2013, rising 20.65% compared with the Sensex's 9.40% rise. The scrip had, however, underperformed the market in past one quarter, sliding 1.65% as against Sensex's 2.33% rise.

The small-cap company has an equity capital of Rs 122.58 crore. Face value per share is Rs 10.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 6.1% to Rs 54.30 crore in Q2 March 2013 over Q2 March 2012.

Commenting on the results, Mr. Rajan Nanda, Chairman & Managing Director, Escorts, said, "Agriculture plays a vital role in driving the nation's economic growth. India is witnessing a rapid shift to entrepreneurial farming, where the farmer demands a product suited to his commerce. Escorts Ltd. has well placed its product offerings both in the cost efficient and premium segment to optimize its growth potential. Our strategic path is to synergize technology, products and processes to meet the emerging challenges and deliver value to all our stakeholders. The infrastructure sector holds out promise for the future. We see opportunity in bridging the demand supply gap in order for us to achieve over 8% GDP growth as outlined in the 12th five year plan."

Mr. Nikhil Nanda, Joint Managing Director, Escorts Limited, said: "We have significantly increased our operating margin with a sharp focus on cost discipline, inter function and group synergies and a diversified bouquet of products. Our mission is to deliver a high level of operational excellence by deploying frugal and lean work ethics and rationalizing our operations. Our focus and commitment remains on improving operating margins through effective management of capital employed, to achieve targeted bottom line growth."

Escorts is one of India's leading engineering conglomerates. The company has diversified business into four different segments: Escorts Agri Machinery (EAM), Escorts Construction Equipment (ECE), Escorts Railway Products (ERP) and Escorts Auto Products (EAP).

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