Escorts Q2 net profit at Rs 16.18 cr

Engineering and agri machinery major Escorts Ltd today reported standalone net profit of Rs 16.18 crore for the second quarter ended September 30, 2015-16.
The company had posted net loss of Rs 7.85 crore in the same period previous fiscal, Escorts Ltd said in a BSE filing.
Net sales during the period under review stood at Rs 797.83 crore as against Rs 986.6 crore in the same year-ago quarter, down 19.13 per cent.
Revenue from agri machinery product was at Rs 609.73 crore during the quarter as compared to Rs 803 crore.
Tractor sales during the quarter stood were down 23.8 per cent at 11,438 units as against 15,013 units in the year-ago period.

Construction equipment segment had a revenue of Rs 124.49 crore as against Rs 121.48 crore last fiscal, while that of the auto ancillary business was at Rs 24.24 crore as compared to Rs 26.81 crore in the corresponding period last year.

Escorts Ltd Chairman Rajan Nanda said: "The tractor industry has been adversely affected by the poor and uneven monsoon. The impact of poor monsoons has been accentuated by the cyclical nature of the industry."
He further said there is farm distress that is getting reflected in the overall industry recording steep drop in tractor sales though there are indications that the second half will show better results.

Escorts Ltd stock closed at Rs 172.95, down 1.76 per cent on the BSE.