Escorts FY11 net dips 5.5% to Rs 125 cr

Agri machinery products maker Escorts today said its consolidated net profit has declined by 5.47% to Rs 125.06 crore for the fiscal ended November 30, 2011, due to rise in raw material costs.

The company had posted a net profit of Rs 132.31 crore in the previous fiscal, Escorts said in a statement.

Consolidated net sales of the company, however, rose to Rs 4,050.32 crore for the financial year ended November 30, 2011, against Rs 3,324.21 crore in the last fiscal.

Commenting on the results, Escorts CMD Rajan Nanda said, "The Escorts annual results reflect the direct impact of a sharp rise in material costs in an overall inflationary economy characterised by price increase of raw material, higher petroleum prices and high interest rates."

He added, "Looking ahead, our aggressive market strategies, launch of new products, recent price revisions and an ongoing cost compression exercise should provide some cushion in the event of continued inflationary pressures."

The company's board, which met today, also approved a dividend of Rs 1.50 (15%) per equity share for the financial year ended September 30, 2011.

On a standalone basis, the company posted a net profit of Rs 120.08 crore for the fiscal, against Rs 137.54 crore in the previous financial year.

Shares of Escorts today closed at Rs 78.05 on the BSE, up 0.26% from its previous close.