Escorts rallies 5% on strong operational performance in Q4

The management said the good harvest, increased procurement by respective governments and their focussed support to farming & prediction of good monsoon will enable quick revival across farm ecosystem

Shares of Escorts moved higher by 5 per cent to Rs 830 on the BSE in an otherwise weak market on Friday after the company delivered strong operating performance in January-March quarter (Q4FY20) amid a tough environment.

The company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) grew 2.5 per cent year-on-year (YoY) to Rs 194 crore, while Ebitda margin, adjusted for one-offs, expanded 50bps YoY to 12.1 per cent against analyst estimate of around 10.5 per cent during the quarter. Revenue fell 15 per cent YoY to Rs 1,380 crore in Q4YF20, due to poor performance by construction equipment segment.