Escorts Q2 Review - Muted Growth Outlook For Tractor Industry: Axis Securities
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Axis Securities Report
Escorts Ltd. reported a good set of numbers in Q2 FY22 (above our estimates), driven by a better tractor mix and a recovery in the railway business in Q2 FY22.
Total revenue stood at Rs 1,661 crore (our estimate: Rs 1,514 crore) against Rs 1,640 crore in Q2 FY21, a marginal growth of 1.4% YoY.
The growth was on account of a 32% YoY revenue growth in the construction equipment and the railway equipment division which was offset by a 14% YoY decline in tractor volumes.
Escorts' Ebitda came in at Rs 210 crore as compared to Rs 301 crore in Q2 FY21, a fall of ~30% YoY.
Ebitda margin stood at 12.6%, a contraction of 571 basis points YoY, on account of the adverse impact of higher commodity prices, negative operating leverage, and volume drop in tractor segments.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.