Escorts' March qtr net profit nearly doubles to Rs 1.12 bn on robust sales

The company had reported a profit of Rs 594 mn for the same period of 2016-17.

Farm equipment maker Escorts on Thursday posted nearly 2-fold increase in net profit at Rs 1.12 bn for March quarter, driven by robust sales across segments.

The company had reported a profit of Rs 594.8 million for the same period of 2016-17.

Revenue from operations stood at Rs 14.36 bn for the reported quarter as compared with Rs 10.43 bn in the year-ago period, Escorts said in a regulatory filing.

For 2017-18, the consolidated net profit stood at Rs 3.46 bn, an increase of over 2-fold from Rs 1.30 bn in 2016-17.

Revenue from operations during the year rose to Rs 50.80 bn as compared with Rs 42.19 bn earlier.

The company's board recommended a dividend of Rs 2 per share of face value of Rs 10 each for 2017-18.

"We have been successfully bringing in new initiatives and process efficiencies with better cost compression, better margins and strengthened customer connect," Escorts Managing Director Nikhil Nanda said.

The company's major thrust today is to integrate global best practices, imbibe and innovate futuristic techniques and product standards to address food security and mechanised infrastructure, he added.

During the fourth quarter, the company sold 23,568 tractors, up 57.4 per cent from the same period of previous year. Escorts sold 80,417 tractors in 2017-18, up 26.1 per cent from 63,786 units in 2016-17.

The company's construction equipment sales were up 35.3 per cent at 4,486 units as compared with 3,315 units in the previous year. Escorts' railways division sales stood at Rs 2.86 bn during the year, up 18.2 per cent from Rs 2.42 bn in 2016-17.

Shares of the company were trading 0.11 per cent down at Rs 957 on BSE.