Escorts’ Profit Rises For Ninth Straight Quarter, Meeting Estimates
Escorts Ltd.’s profit rose for the ninth straight quarter, meeting analyst estimates in the quarter ended March.
Net profit of the tractor maker rose 89 percent year-on-year to Rs 112 crore, Escorts said in its filing with the stock exchanges. That’s in line with the Bloomberg consensus estimate of Rs 109 crore.
Revenue rose 40 percent on a yearly basis to Rs 1,436 crore led by higher sales volume. The company sold 23,568 units between January and March, an increase of 57.4 percent from the corresponding quarter last year. Revenue from tractor business alone rose 36.4 percent to Rs 1,094 crore during the period.
“Growing and much-deserved focus on rural upliftment, farm mechanisation and agricultural infrastructure and smart urban ecosystem reflected in our growth across businesses,” Chairman Rajan Nanda said in the filing.
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The operational income or the earnings before interest, tax, depreciation and amortisation jumped 132 percent to Rs 174.1 crore as compared to the same quarter last year. The operating margin expanded to 12.1 percent from 7.3 percent during this period.
Shares of Escorts swung between gains and losses and traded at Rs 954 apiece as of 2:20 p.m. after the earnings announcement. The stock gained 3.9 percent between January and March, compared to a 9.9 percent decline in NSE Nifty Auto Index.