Escorts Q4 Review - Rural Demand Loses Pace: Dolat Capital
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Dolat Capital Report
Escorts Ltd. reported strong all-round performance in Q4 FY21.
Ebitda jumped 77% YoY to Rs 3.45 billion with strong margin at 15.6% (up 151 basis points YoY; down 245 basis points QoQ), the benefit of operating leverage was offset by higher raw material cost.
The net revenue grew 60% YoY to Rs 22 billion led by 64% growth in agri machinery products, 53% growth in construction equipment and 36% growth in railway equipment segment.
Management expects Q1 to be weak due to the spread of Covid-19 cases in rural India, two thirds of dealerships are closed (entirely or partially) due to regional lockdowns.
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