Escorts' consolidated net profit dropped 32.36% to Rs 193.71 crore on a 2.83% decline in revenue from operations to Rs 1,984.28 crore in Q3 December 2021 over Q3 December 2020.
Consolidated profit before tax (PBT) skid 31.60% to Rs 261.62 crore in Q3 FY22 from Rs 382.49 crore in Q3 FY21.
On a standalone basis, net profit declined 28.19% to Rs 201.52 crore on a 2.97% fall in revenue from operations to Rs 1,957.49 crore in Q3 FY22 over Q3 FY21. EBITDA shed 27.3% to Rs 264.60 crore in Q3 FY22 from Q3 FY21. EBITDA margin fell by 453 bps Y-o-Y to 13.5% during the quarter.
In Escorts Agri Machinery segment, for quarter ended December 2021, tractor volumes stood at 25,325 units, up by 20.2% sequentially and down by 19.8% Y-o-Y as against 31,562 units in the corresponding quarter. Segmental revenue was at Rs 1,505.60 crore in quarter ended December 2021, grew 21.3% as against Rs 1,240.90 crore in sequential quarter but de-grew by 8.9% Y-o-Y as against Rs 1,652.70 crore in corresponding quarter. EBIT margin for the segment improved 76 bps at 15.8% as compared to 15.1% in sequential quarter but due to steep inflation in commodities prices and lower volumes, came down 432 bps, as compared to 20.1% in corresponding quarter.
In Escorts Construction Equipment segment, for quarter ended December 2021, construction equipment sales volume stood at 1,151 machines grew 7.2% as against 1,074 machines in sequential quarter but down by 8.2% as against 1,254 machines in corresponding quarter. Segmental revenues were at Rs 276.20 crore in quarter ending December 2021, growing 10.8% as against Rs 249.20 crore in sequential quarter and up by 12.9% Y-o-Y as against Rs 244.7 crore in corresponding quarter. Due to steep inflation in commodities prices, EBIT margin for the segment at 2.5% were down 114 bps sequentially and down 509 bps as against 7.5% in corresponding quarter last year.
In Railway Products Division segment, for quarter ended December 2021, the Railway Product Division achieved its highest ever quarterly revenue was at Rs 173.9 crore, up by 2.2% against Rs 170.20 crore in sequential quarter and up by 48.1% Y-o-Y as against Rs 117.40 crore in corresponding quarter. Due to adverse commodities prices EBIT margin for the segment came at 14.3%, down by 296 bps against 17.3% in sequential quarter and up by 164 bps against 12.7% in corresponding quarter. The order book for the division, at end of December 2021, was more than Rs 400 crore.
Speaking on the quarterly results, Nikhil Nanda, the chairman and managing director (MD) of Escorts, said, "The tractor industry has now been impacted for two consecutive quarters due to high base of last year, delayed harvest of Kharif crops owing to late monsoon rains this year which affected the rural cash flows and the retail demand. Going forward, we do expect cash flows to improve with better Kharif procurement and positive outlook with good Rabi sowing. While high inflation remains a concern, we are hopeful of macro- economic factors to be in favour of agriculture to boost rural demand. We continue to invest in new product development and distribution spread to offer enhanced reach and customer experience across domestic & global markets. Multiple initiatives in agriculture and infrastructure development focus from government will be helpful in creating opportunities across our agriculture, construction & railway portfolio."
Shares of Escorts rose 1.08% to Rs 1,843.30 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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