Escorts skids after weak Q1 results

Escorts fell 2.06% to Rs 463.50 at 12:25 IST on BSE after the company's consolidated net profit fell 27.6% to Rs 87.74 crore on a 5.8% decrease in net sales to Rs 1,440.45 crore in Q1 June 2019 over Q1 June 2018.

The result was announced on Saturday, 27 July 2019.

Meanwhile, S&P BSE Sensex was down 345.25 points or 0.91% at 37,537.54.

On BSE, 1.7 lakh shares were traded in Escorts counter, compared to a 2-week average of 1.28 lakh shares. The stock hit an intraday high of Rs 479.80 and an intraday low of Rs 459.40, which is also 52-week low for the counter. It hit a 52-week high of Rs 943.60 on 31 July 2018.

The company's EBITDA fell 23.3% to Rs 142.4 crore in Q1 June 2019 as against Q1 June 2018. The tractor volumes were at 21,051 units as compared to 24,494 units in Q1 June 2019 over Q1 June 2018. The construction equipment sales volume for Q1 June 2019 stood at 1,067 machines as against 1,345 machines in Q1 June 2018. The Railway division sales went up by 34.1% at Rs 118.1 crore in Q1 June 2019 as against Rs 88.1 crore in Q1 June 2018.

Nikhil Nanda, the chairman and managing director of Escorts, said that, "Escorts has been treading aligned to expectations across Agri Machinery, Construction and Railway businesses. Tractor industry has been slowing down since last few months, thus our endeavor is to keep revenue and profitability intact with strategic initiatives and elimination of waste and inefficiencies. We will continue to invest in critical new products and technologies, efficient and diversified distribution which will enable us to increase our market share across domestic & export markets."

Escorts makes agricultural tractors and construction equipment. The company's segments are agri machinery, auto ancillary products, railway equipment, construction equipments and others.

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