Escorts rallies on over two-fold jump in Q3 net

Escorts Limited has rallied 6% at Rs 62.70 after reporting over two-fold jump in net profit at Rs 26.88 crore for the quarter ended June 30, 2012, due to new launches, better product mix and low inventory costs. The company had posted a net profit of Rs 13.22 crore in the corresponding quarter previous fiscal.

Net sales grew 18% at Rs 859 crore in the quarter under consideration from Rs 729 crore in the same period year ago. During the last quarter, sales volumes rose by 13% at 16,083 tractors as against 14,212 units in the corresponding quarter.

Commenting on the results Escorts Chairman and MD Rajan Nanda said: "The profitability in the third quarter is a combination of growth in sales, better margins and cost compression measures."

 

“Operating margins improved by more than 200 basis points at 6.5% as compared to 4.3% in the corresponding quarter last year. The company also improved the market its market share to 10.7% in the quarter,” Escorts said in a press release.

The stock opened at Rs 61.50 and hit a high of Rs 64 on the NSE. A combined 1.01 million shares have changed hands on the counter in opening deals.