Q3 Standalone Profit Sequentially more than doubled to ₹ 186.4 cr.

Escorts Kubota Limited today reported net profit of ₹ 186.4 crore in quarter ended December 31, 2022, as against a profit of ₹ 201.5 crore in corresponding quarter of the previous fiscal and as against ₹ 87.7 crore after exceptional item in sequential quarter, adversely impacted due to unabsorbed inflation and adverse product mix.

 Revenue from operations was at ₹ 2,263.7 crores in quarter ended December 2022 as against ₹ 1,971.5 cores in corresponding quarter of the previous fiscal. EBIDTA for the quarter ended December 2022, came at ₹ 190.3 crore as against ₹ 278.6 crore in corresponding quarter of the previous fiscal.

Revenue from operations was at ₹ 6,162.0 crore in nine months ended December 2022 as against  ₹ 5,327.3 crore in the corresponding period last fiscal. The standalone profit before tax and before exceptional item of ₹ 72.8 crore is at ₹ 630.9 crore as against of ₹ 752.4 crore in the corresponding period last fiscal.

At consolidated level revenue from operations was at ₹ 6,214.2 crores as against ₹ 5,396.0 cores in nine months ended December 2021. Consolidated net profit recorded at ₹ 420.2 crore in nine months ended December 2022, as against a profit of ₹ 545.6 crore in corresponding period last fiscal, adversely impacted due to unabsorbed commodity price inflation coupled with an exceptional item of ₹ 53.1 crore on account of impairment of investment in the Joint Venture Tadano Escorts India Private Limited. EPS reported at ₹ 38.85 as against ₹ 55.48 in corresponding period last fiscal.

Speaking on the results, Chairman and Managing Director Mr. Nikhil Nanda said, “There has been positive & continuous growth across businesses, and we feel government spending on core sectors will favour demand across industry segments. We have recently announced our mid-term business plan and all our strategic efforts are directed in achieving the targeted growth. In agri business, rural sentiments continue to remain favourable owing to improved rabi sowing assisted by good monsoon this year. We are witnessing improved demand across products in our construction business too as the infrastructure projects are now moving at a fast pace and expect this demand to continue for the balance period of this fiscal year. Railway business is consistently growing on order book, and we look at a good performance ahead. We will continue to invest in new products, innovative & digitised processes, and wider global distribution for enhanced customer coverage. While inflation impact on margin may take some time to normalise, the overall macroeconomic factors remain favourable for overall economic growth.”

 As per Deputy Managing Director, Mr. Seiji Fukuoka, “Our mid-term business plan has mapped opportunities across our core business verticals, and we are hopeful that with our strategic initiatives & operational efficiency across segments, we will be able to achieve desired growth. We will continue to develop product mix and integrate innovation for enhanced customer experience and leverage on growing demand. Enhanced focus on farming prosperity and infrastructure development will always be one of our main focus and we will continue to contribute in the space through our technology offering.”

SEGMENT WISE PERFORMANCE

Agri Machinery Products

Tractor volumes at 28,025 units in quarter ended December 2022 went up by 10.7% as against 25,325 units in the corresponding period last fiscal. Segment revenue went up by 12.4% at ₹ 1,708.0 crore in quarter ended December 2022 as against ₹ 1,519.3 crore in corresponding period last fiscal. In this quarter unabsorbed inflation in the commodities prices and adverse product mix has resulted in lower EBIT margin at 8.3%, as compared to 8.4% in Sequential quarter and 15.7% last year same period.

For nine months ended December 2022 of current fiscal, tractor volumes went up by 8.6% at 78,525 units as compared to 72,333 units in corresponding period last fiscal. Segment revenue also went up by 13.5% at ₹ 4,758.6 crore in nine months ended December 2022 as against ₹ 4,193.0 crore in corresponding period last fiscal. EBIT margin for nine months ended December 2022 came at 9.1% as compared to 15.4% in the corresponding period last fiscal.

Construction Equipment

Construction equipment sales volume at 1,209 machines in quarter ended December 2022 went up by 5% as against 1,151 machines in corresponding period last fiscal. Segment revenues went up by 10.7% at ₹ 306.1 crore in quarter ending December 2022 as against ₹ 276.5 crore in corresponding period last fiscal. EBIT margin turned positive at 2.2% as against 2.5% in corresponding period last fiscal.

For nine months ended December 2022 of current fiscal, construction equipment volumes went up by 9.2% at 3,092 units as compared to 2,831 units in corresponding period last fiscal. Segment revenue went up by 19.0% at ₹ 794.1 crore in nine months ended December 2022 as against ₹ 667.3 crore in corresponding period last fiscal. EBIT margin for nine months ended December 2022 was at 0.4% as against 1.9% in the corresponding period last fiscal.

Railway Products Division

Revenue for the third quarter at ₹ 249.3 crore in quarter ending December 2022, our ever-highest quarterly revenue, went up by 43.4% as against ₹ 173.9 crore in the corresponding quarter. EBIT margin stood at 13.1% in quarter ended December 2022 as against 14.3% in corresponding period last fiscal.

For nine months ended December 2022 railways products segment revenue went up by 30.5% at ₹ 604.7 crore, highest ever, as against ₹ 463.4 crore in corresponding period last fiscal. EBIT margin for nine months ended December 2022 stood at 13.7% as compared to 15.5% in the corresponding period last fiscal.

Order book for the division, at end of December 2022, was more than ₹ 1,000 crore.