Escorts rises after decent Q3 earnings

Escorts jumped 2.76% to Rs 747.65 after the commercial vehicles manufacturer reported stellar Q3 numbers.

On a consolidated basis, Escorts reported 11.19% rise in net profit to Rs 154.79 crore in Q3 December 2019 as against Rs 139.21 crore reported in Q3 December 2018. Revenue from operations declined 1.27% to Rs 1650.22 crore year-on-year (YoY).

Consolidated Profit before tax (PBT) for Q3 December 2019 (Q3 FY20) stood at Rs 211.12 crore, up by 1.1% against Rs 208.82 crore reported in Q3 December 2018 (Q3 FY19). Tax expenses fell 19.08% to Rs 56.33 crore in Q3FY20 from Rs 69.61 crore reported in Q3 FY19.

On a standalone basis, net profit rose 9.24% to Rs 153.05 crore on 1.31% increase in net sales to Rs 1,633.44 crore YoY. PBT fell 0.29% to Rs 209.41 crore YoY

Railway products division revenue for the third quarter rose 28.8% at Rs 124.4 crore as against Rs 96.6 crore in the corresponding quarter.

Construction equipment sales volume for the quarter ended December 2019 were 1,044 machines as against 1,413 machines in corresponding period last fiscal. Segmental revenues came at Rs 216.6 crore in quarter ending December 2019 as against Rs 265.9 crore in corresponding period last fiscal.

Tractor sales were at 25,109 units in quarter ended December 2019 as against 25,743 units in the corresponding period last fiscal. Segmental revenue came at Rs 1,291.5 crore in quarter ended December 2019 as against Rs 1,292.6 crore in corresponding period last fiscal.

Speaking on the results, Chairman and managing Director, Nikhil Nanda said, "We are continuing our journey of providing unique and innovative technology solutions for maximizing agriculture yield, bring in efficiency in the construction equipment space and make rail transport safer. Our investment in new product development, R&D and wider distribution is in line with the enhanced customer experience that we commit to offer to create value for our customers across domestic and export geographies. As the nation is inching towards a new budget focus, we are sure with enhanced central focus on agriculture and infrastructure, we will be able to play a larger role in national growth and development."

The company clarified that order book for the division stood at more than Rs 450 crore as at end of December 2019 that will get executed in the next 12-15 months.

Escorts is an engineering company, which offers agricultural tractors and construction equipment. The automobile firm's segments include agri machinery, auto ancillary products, railway equipment, construction equipments and others.

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