Escorts’ profit up by 40.7% at Rs 484.9 crore in FY18-19
The Board of Directors recommended a dividend of Rs 2.5 per share of face value of Rs 10, for 2018-19 as against the dividend of Rs 2 per share of face value of Rs 10 in 2017-18
Escorts Limited reported a standalone profit of Rs 484.9 crore in year ended March 31, 2019, up by 40.7 per cent as against a profit of Rs 344.7 crore in the previous fiscal and consolidated profit of Rs 477.9 crore in year ended March 31, 2019 up by 37.9 per cent as against a profit of Rs 346.6 crore in the previous fiscal. Profit for quarter ended March 2019 was up by 7.8 per cent at Rs 121.4 crore as against Rs 112.5 crore in the corresponding quarter last year.
The Board of Directors recommended a dividend of Rs 2.5 per share of face value of Rs 10, for 2018-19 as against the dividend of Rs 2 per share of face value of Rs 10 in 2017-18.Speaking on the results Nikhil Nanda, Chairman, Escorts Ltd said, “Escorts is committed to provide state-of- the-art technology and unique engineering solutions for mechanised and innovative agriculture solutions, well supported infrastructure and safe rail transport. We will continue to bring in new technologies with a blend of frugal engineering and global technology collaborations for domestic and global markets, enabled by strong product mix and expanded distribution network. Our emerging businesses like crop solutions rental services, aggregation of tractors for wider usage will provide strong impetus and farmer access to modern agriculture practices.”
Tractor sales at 96,412 tractors were up by 19.9 per cent as against 80,417 tractors in previous fiscal. This was accompanied by significant improvement in EBIT margins which was up by 41 bps at 14 per cent as compared to 13.6 per cent in previous fiscal. For fourth quarter ended March’19, tractor volumes at 25,136 tractors were up by 6.7 per cent and EBIT margins for quarter ended March 2019 at 13.1 per cent as compared to 15.1 per cent in the corresponding period last fiscal.
Construction equipment sales at 5,544 units were up by 23.6 per cent as against 4,486 units in the previous fiscal. With ongoing cost reduction efforts, along with industry growth, has resulted in 166 bps improvement in EBIT margins to 3.6 per cent as against 1.9 per cent in previous fiscal. For fourth quarter ended March'19, construction equipment volumes at 1,455 were down by 5.6 per cent and EBIT margin at 7.1 per cent as against 5.1 per cent in previous fiscal same quarter.
Railway division sales at Rs 394.1 crore were up by 37.5 per cent as against Rs 286.6 crore in the previous fiscal. EBIT were margins up by 601 bps at 19.9 per cent as against 13.9 per cent in the previous fiscal. For fourth quarter ended March’19, sales at Rs 103.5 crore were up by 36.1 per cent and EBIT margin at 15.1 per cent as against 15.9 per cent in the previous fiscal same quarter. The current order book is more than Rs 490 crore and will be executed in the next 14-15 months.