Escorts March quarter net dips 15% at Rs 32 cr

Tractor maker Escorts Ltd today posted 15.18% decline in its net profit at Rs 31.78 crore for the January-March quarter ended March 31, 2014.

The company had posted a net profit of Rs 37.47 crore in the same period of previous fiscal.

Net sales of the company also declined at Rs 977.17 crore for the quarter, as compared to Rs 997.13 crore in the same period of corresponding fiscal, Escorts said in a BSE filing.

For the 18 months ended March 31, 2014, the company posted a net profit of Rs 244.89 crore, up 81.11%, from Rs 135.21 crore in the 18 months ended March 2013.

Net sales of the company for the eighteen months ended March 31, 2014 rose to Rs 6,267.61 crore, from Rs 5,900.85 crore in the previous fiscal.

The company has extended its financial year to align with the April-March fiscal calendar. The fiscal year was of 18 months and the January-March 2014 quarter is accordingly the sixth quarter of the fiscal.

"The 18 month fiscal has been a mixed bag of strong growth followed by a slowdown in the last quarter as a result of crop damage due to unseasonal rains, elections and a slow economy," Escorts Ltd Chairman Rajan Nanda said.

Managing Director Nikhil Nanda said the company will maintain its operational focus through internal restructuring, reduction of headcount and outsourcing.

"Tight cost management, and enrichment of the product mix will remain our goal to achieve higher EBITDA margins. Our plan to manufacture the Ferrari Tractor in India and for global markets is at an advanced stage," he added.

The company's board, which met today, recommended a final dividend of of Rs 0.60 (6%) per equity share, subject to the approval of the shareholders.

Escorts shares today closed at Rs 126.60 apiece on the BSE, down 1.25% from previous close.