Escorts reports 6% rise in consolidated profit to Rs 92.58 cr in Apr-Jun

Farm equipment and engineering major Escorts Ltd on Monday reported a 6 per cent increase in consolidated net profit to Rs 92.58 crore in the quarter ended on June 30, 2020.

The company had posted a consolidated net profit of Rs 87.66 crore in the same period last fiscal, Escorts Ltd said in a regulatory filing.

Consolidated revenue from operations during the quarter under review stood at Rs 1,089.26 crore as compared to Rs 1,440.45 crore in the year-ago period, it added.

Revenue from the agri machinery segment stood at Rs 976.71 crore in the first quarter of 2020-21 as compared to Rs 1,105.71 crore in the same period a year ago.

Construction equipment segment posted revenue of Rs 52.40 crore as compared to Rs 212.20 crore in the year-ago period, while the railway equipment vertical had a revenue of Rs 54.91 crore as against Rs 118.10 crore in the same period last fiscal, it added.

Due to the unprecedented Covid-19 pandemic situation during this period, the financials for the quarter ended June 2020 do not represent normal operations and to that extent are not strictly comparable with any normal quarter, the company said.

Commenting on the performance, Escorts Ltd Chairman and Managing Director Nikhil Nanda said, "In this prolonged pandemic we are trying to find new and innovative ways to connect with our customers and providing them with un-interrupted product distribution and service."

Rural demand in agriculture has been encouraging and government focus will aid to the sector in helping farming to continue the momentum, he added.

"Amidst the challenging environment, while we have witnessed faster revival in our agriculture business this quarter, our construction and railway business have been impacted because of lockdown and related issues across geographies," Nanda said adding the company is maintaining business continuity and ensuring safety of all its employees, stakeholders and partners aligned to government advisories.