Escorts reported 9.71% rise in consolidated net profit to Rs 127.73 crore on a 15.97% fall in net sales to Rs 1385.65 crore in Q4 March 2020 over Q4 March 2019.
Total expenses declined 17.34% on a year-on-year basis (YoY) to Rs 1,235.31 crore in Q4 FY20, buoyed by lower raw material costs (down 6.77% YoY) and lower finance costs (down 57.32% YoY). The company reported total expenses to the tune of Rs 1,494.49 crore in Q4 FY19. Profit before tax (PBT) in the fourth quarter stood at Rs 179.15 crore, up by 3.67% from Rs 172.81 crore in the corresponding period last year.
Tractor sales fell 20% to 20,108 units in quarter ended March 2020 as against 25,136 units in the corresponding period last fiscal. Construction equipment sales were down 32.2% to 986 units in Q4 FY20 as against 1,455 units in Q4 FY19.
Income from sale of railway equipments rose 4.33% YoY to Rs 107.97 crore during the quarter. Order book for the company's railway division stood at more than Rs 500 crore as at end of March 2020, that will get executed in the next 12 - 15 months.
Escorts' net profit fell 1.29% to Rs 471.72 crore on 7.22% decline in revenue from operations to Rs 6,262.02 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT stood at Rs 634.747 crore in FY20, down by 12.40% from Rs 708.22 FY19.
Speaking on the results, chairman Nikhil Nanda said "The recent epidemic has changed the business narrative and its time that our priority remains valuing life and securing business to support our community. There is a serious impact on the industry and respective business operations and it will take some time to regain normalcy. This quarter reflects partial impact but we are preparing ourselves to set new norms through reinventing, innovating and digitizing our ways to engage and connect stakeholders for the business operations ahead even as the uncertainty of affairs still exist. There would be a lot of dependency on the flexibilities and policies that will be issued by the government for the sectors and the aid offered to support the farming community to sustain their essentials and requirements. Good harvest, increased procurement by respective governments and their focussed support to farming & prediction of normal monsoon will enable quick revival across farm ecosystem. We are optimistic for the coming quarters and hope that the collective efforts will help in containing the crisis and the Indian economy will be on its strength soon again."
The Escorts Group is an Indian engineering company that operates in the sectors of agri-machinery, construction and material handling equipment, and railway equipment.
Shares of Escorts fell 1.95% to Rs 796.40. It has traded in the range of Rs 779 and Rs 807.45 so far during the day.
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