Escorts spurts after strong Q3 performance

Escorts rose 4.99% to Rs 1328.05 after the company's consolidated net profit jumped by 85.1% to Rs 286.71 crore on a 23.8% rise in revenue from operations to Rs 2,042.23 crore in Q3 FY21 over Q3 FY20.

Profit before tax in Q3 December 2020 stood at Rs 382.49 crore, up by 81.2% from Rs 211.12 crore in Q3 December 2019. Current tax outgo was higher by 71.2%, at Rs 97.37 crore in Q3 FY21 over Q3 FY20.

On a standalone basis, the company's net profit increased by 83.4% to Rs 280.7 crore on a 23.5% rise in revenue from operations to Rs 2,017.4 crore in Q3 FY21 over Q3 FY20.

Tractor volumes were up by 25.7% at 31,562 units in quarter ended December 2020 as against 25,109 units in the corresponding period last fiscal.

Construction equipment sales volume for the quarter ended December 2020 were up by 20.1% at 1,254 machines as against 1,044 machines in corresponding period last fiscal.

Railway products division revenue for the third quarter was at Rs 117.4 crore in quarter ending December 2020, down by 5.6% from Rs 124.4 crore in the corresponding quarter.

Speaking on the results, chairman and managing Director, Nikhil Nanda said, "Agriculture demand for tractors and farm mechanization is witnessing a continuous growth. We are hopeful of a sustained momentum as we see strengthening in farm and rural economies. We have been maintaining adequate safety standard across the organization to maintain art uninterrupted supply to our customers. The positive development in the construction equipment space is also encouraging. We are optimistic of better environment ahead for business recovery in the Construction and Railway Equipment segments as well. The Government's efforts on Covid vaccination will further infuse confidence across sectors and will provide further impetus to the economy."

The Escorts Group is an Indian engineering company that operates in the sectors of agri-machinery, construction and material handling equipment, and railway equipment.

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