Escorts fell 0.93% to Rs 1217.25 on profit taking after advancing for two sessions in a row.
The stock had gained 3.42% in two sessions to end at Rs 1,228.70 yesterday, from its recent closing low of Rs 1,188.05 on 29 October 2020.
On a year-to-date (YTD) basis, the stock has zoomed 92.98% while the benchmark S&P BSE Sensex lost 2.37% during the same period.
Escorts announced its Q2 earnings during market hours yesterday. The company's standalone net profit jumped 119.8% to Rs 229.9 crore on 23.9% rise in revenue from operations to Rs 1,639.7 crore in Q2 September 2020 over Q2 September 2019.
EBIDTA surged 137.4% to Rs 300.9 crore while the EBIDTA margin improved by 878 bps to 18.3% in Q2 FY21 over Q2 FY20.
Tractor volumes increased by 23.8% at 24,441 units while the construction equipment sales volume declined by 13.1% to 821 units in Q2 September 2020 over Q2 September 2019.
Revenue of the Agri Machinery business stood at Rs 1,322.2 crore (up 32.8% YoY), revenue of the construction equipment business stood at Rs 156.9 crore (down 21.9% YoY) and revenue of the railway products division stood at Rs 160.2 crore (up 26.4% YoY).
Escorts said that due to unprecedented COVID-19 pandemic situation during first half of fiscal FY2021, and a total stoppage of all train operations except for few Sharamik special trains, all the coach, locomotive production units and wagon manufacturers had cut down their annual production for FY21 drastically, affecting fresh order tendering and order inflow. Order book for the division, at end of September 2020, was more than Rs 350 crore that would get executed in the next 6 to 8 months. Going forward it is expected that tendering process will get back to pre-COVID level by Q4 of current fiscal.
Speaking on the results, chairman and managing director, Nikhil Nanda, said: "The Agri sector has been on an unprecedented boom. Maintaining highest safety measures and working closely with our partners to work around supply chain challenges, the demand for our tractors has so far outpaced our supplies. We think the momentum in Agri sector will continue supported by positive macro-economic factors.
We also hope that supply chain challenges would subside after a month or so. We have also started witnessing some positive development in the construction and railway equipment space now and hopefully we will see a full recovery soon. In all our business segments, we are optimistic for the coming quarters."
The Escorts Group is an Indian engineering company that operates in the sectors of agri-machinery, construction and material handling equipment, and railway equipment.
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