Escorts reported 23.1% fall in standalone net profit to Rs 176.7 crore on a 1.4% rise in revenue from operations to Rs 1,662.3 crore in Q2 FY22 over Q2 FY21.
EBIDTA for the quarter ended 30 September 2021 reported at Rs 210.1 crore as against Rs 300.9 crore in corresponding quarter last fiscal, down 30.2% YoY. EBIDTA margin was 12.6% in Q2 FY22 as against 18.3% in Q2 FY21.
With regard to the Escorts Agri Machinery (EAM) division, the company said that the tractor sales volume declined 13.8% to 21,073 units in quarter ended September 2021 as against 24,441 units in the corresponding period last fiscal. Segmental revenue fell 6.1% to Rs 1,240.9 crore in quarter ended September 2021 as against Rs 1,322.2 crore in corresponding period last fiscal.
This quarter steep inflation in commodities prices and lower volume, resulted in lower EBIT margin at 15.1%, as compared to 20% in corresponding period last fiscal.
With regard to the Escorts Construction Equipment (ECE) division, the company said that the construction equipment sales volume for the quarter ended September 2021 went up by 30.8% at 1,074 machines as against 821 machines in corresponding period last fiscal. Segmental revenues came at Rs 249.2 crore in quarter ending September 2021 as against Rs 156.9 crore in corresponding period last fiscal, up 58.8% YoY.
The company's Railway Equipment Division (RED) recorded revenues of Rs 170.2 crore in quarter ending September 2021, up by 6.2% as against Rs 160.2 crore in the corresponding quarter. This quarter had higher sales coming from new products.
Escorts said that it is currently witnessing good traction in tendering process. Order book for the division, at end of September 2021 was more than Rs 310 crore.
Nikhil Nanda, chairman and managing Director, said, "Industry is constantly changing and adapting to the fast-changing environment. There is a positive sentiment across industry, and we feel, tractor and Agri-equipment industry is clawing back to a sustained momentum and growth path.
PM Gati Shakti National Master Plan will also help to push infrastructure segment with logistics ease and multi-modal connectivity. We are witnessing encouraging developments in construction and railway equipment segment too and are hopeful of a wider recovery soon.
At the consolidated level, Escorts recorded 10% rise in net profit to Rs 351. 9 crore on a 23% increase in revenue from operations to Rs 3,375.6 crore in Q2 FY22 over Q2 FY21.
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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