On a consolidated basis, the tractor maker's net profit rose 5.6% to Rs 92.58 crore on 24.4% decline in net sales to Rs 1,089.26 crore in Q1 June 2020 over Q1 June 2019.
Profit before tax (PBT) fell 6% to Rs 121.63 crore in Q1 June 2020 as against Rs 129.36 crore in Q1 June 2019. Total tax expense for the quarter skid 30.34% at Rs 29.05 crore as against Rs 41.70 crore in Q1 June 2019. The result was declared during market hours today, 27 July 2020.
EBIDTA fell 14.35% YoY to Rs 122 crore in Q1 June 2020. EBIDTA margin stood at 11.2% during the quarter, up 131 bps compared with 9.9% in the same quarter last year.
Due to 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 Q1 result, Nikhil Nanda, the chairman and managing director (MD) of Escorts, has said that: "We are maintaining business continuity and ensuring safety of all our employees, stakeholders & partners aligned to government advisories. 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 & service. Rural demand in agriculture has been encouraging and government focus will aid to the sector in helping farming to continue the momentum. 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."
"Hopefully, we will see a recovery soon as the current market situation gets better and the economy across layers improves. We are optimistic for the coming quarters and hope that the collective efforts will help in containing the crisis and the global economy will be on its strength soon again," he added.
Tractor sales volume for the quarter ended June 2020 were 18,150 tractors, lower than 21,051 tractors in the corresponding period last fiscal. Segmental revenues came at Rs 953.5 crore in quarter ending June 2020, lower than Rs 1,092 crore in the corresponding period last fiscal.
Construction equipment sales volume for the quarter ended June 2020 declined to 234 machines as against 1,067 machines in the corresponding period last fiscal. Segmental revenues came at Rs 52.50 crore in quarter ending June 2020, steeply lower against Rs 212.20 crore in the corresponding period last fiscal.
Railway Equipment Division (RED)'s revenue for the quarter ended June 2020 was at Rs 54.9 crore, lower than Rs 118.10 crore in last year same quarter.
Shares of Escorts declined 2.57% to Rs 1,098.60 on BSE. 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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