Escorts rose 5.68% to Rs 160.95 at 14:49 IST on BSE on reports the company implemented a voluntary retirement scheme under which 350 employees have exited the company.
Meanwhile, the BSE Sensex was up 434.63 points, or 1.66%, to 26,681.42.
On BSE, so far 10.96 lakh shares were traded in the counter, compared with an average volume of 6.07 lakh shares in the past one quarter.
The stock hit a high of Rs 163.15 and a low of Rs 153.25 so far during the day. The stock hit a 52-week high of Rs 167 on 22 September 2014. The stock hit a 52-week low of Rs 90 on 11 October 2013.
The stock had outperformed the market over the past one month till 8 October 2014, rising 10.44% compared with 3.93% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 20.73% as against Sensex's 2.60% rise.
The small-cap company has an equity capital of Rs 122.58 crore. Face value per share is Rs 10.
With an operational focus on improving business performance, Escorts has reportedly implemented group-wide future-oriented voluntary retirement scheme (VRS), aimed particularly at restructuring Escorts Auto Products.
The exercise will cost around Rs 30 crore and will have a payback of two years. The one time impact will be reflected in the company's Q2 results. The exercise was closed within 30 days, reports added.
This largest-ever VRS at Escorts was availed by 350 employees and will enable greater efficiencies and productivity due to rationalisation of deployment, report said.
Escorts' net profit declined 41.49% to Rs 34.11 crore on 4.33% decline in net sales to Rs 1122.11 crore in Q1 June 2014 over Q1 June 2013.
The Escorts Group is among India's leading engineering conglomerates operating in high growth sectors of agri machinery, material handling & construction equipment, railway equipment and auto components.
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