New Delhi, November 2, 2020: Escorts Agri Machinery tractor volumes for the second quarter ended 30 September 2020 (July to September) were up by 23.8 percent at 24,441 units in quarter ended September 2020 as against 19,750 units in the corresponding period last fiscal.
Segmental revenue went up by 32.8 percent at INR 1,322.2 crore in quarter ended September 2020 as against INR 995.6 crore in corresponding period last fiscal. This quarter favourable product mix, operating leverage and various cost reduction initiatives, resulted in ever highest quarterly EBIT margin at 20.0 percent, up by 973 bps, as compared to 10.3 percent in corresponding period last fiscal.
Speaking on the results, Chairman and Managing Director Nikhil Nanda said, “The Agri sector has been on an unprecedented boom. Maintaining the highest safety measures and working closely with our partners to work around supply chain challenges, the demand for our tractors has so far outpaced our supplies. We think the momentum in Agri sector will continue supported by positive macro-economic factors. We also hope that supply chain challenges would subside after a month or so."
"We have also started witnessing some positive development in the construction and railway equipment space now and hopefully we will see a full recovery soon. In all our business segments, we are optimistic for the coming quarters,” Nanda said.
For first half of current fiscal, tractor volumes went up by 4.4 percent at 42,591 units as compared to 40,801 units in corresponding period last fiscal. Segmental revenue also went up by 9 percent at INR 2,275.7 crore in half year ended September 2020 as against INR 2,087.7 crore in corresponding period last fiscal.
EBIT margin for first half of fiscal was up by 708 bps at 17.7 percent as compared to 10.6 percent in the corresponding period last fiscal.
During the Q2, the company reported highest ever standalone quarterly profit of ₹ 229.9 crore in quarter ended September 30, 2020, that more than doubled against a profit of INR 104.6 crore in the corresponding period last year. Revenue from operations at INR 1,639.7 crore in quarter ended September 2020 went up by 23.9 percent as against INR 1,323.9 crore in the corresponding period last year.
EPS reported at INR 17.72 was up by 102.5 percent as against INR 8.75 in the corresponding quarter and INR 7.71 in the sequential quarter.
Due to the unprecedented COVID-19 pandemic situation during this period, the financials for the first six months ended September 2020 do not represent normal operations and to that extent are not strictly comparable with the corresponding period, the company statement said.