Escorts Limited, an Indian multinational conglomerate and automotive engineering company, announced that the profit for quarter ended on March 2020 showed an increase in the consolidated profits of around 10 per cent. The railway equipment business of the company has shown promising growth in the last fiscal.
The company’s standalone profit of Rs 485.5 crore in year ended March 31, 2020. as against a profit of ? 484.9 crore in the previous fiscal and consolidated profit of ? 471.7 crore in year ended March 31, 2020 as against a profit of ? 477.9 crore in the previous fiscal. Profit for quarter ended March 2020 was up by 15.7 percent at ? 140.4 crore as against ? 121.4 crore in the corresponding quarter last year.
Nikhil Nanda, Chairman, Escorts Ltd, speaking on the current market said, “The recent epidemic has changed the business narrative and its time that our priority remains valuing life and securing business to support our community. Escorts, amidst the global crisis, is committed to safety & wellbeing of all our employees, partners and stakeholders. We are aligned to government advisories and will ensure taking all the precautions and preventions at our facilities.”
Speaking on the impact on the industry, Nanda added, “There is a serious impact on the industry and respective business operations and it will take some time to regain normalcy. This quarter reflects partial impact but we are preparing ourselves to set new norms through reinventing, innovating and digitising our ways to engage and connect stakeholders for the business operations ahead even as the uncertainty of affairs still exist.”
He also believed that there would be a lot of dependency on the flexibilities and policies that will be issued by the government for the sectors and the aid offered to support the farming community to sustain their essentials and requirements.
The company sold 20,108 tractors in quarter ended March 2020 as against 25,136 units in the corresponding period last fiscal. Segmental revenue came at Rs 1,058.4 crore in the quarter ended March 2020 as against Rs 1,230.9 crore in corresponding period last fiscal.
The company’s construction equipment sales were at 4,042 units in the FY 2019-20 as against 5,544 units in the previous fiscal. The segmental garnered revenue of Rs 839.8 crore in FY 2019-20 as against Rs 1,054.1 crore in previous fiscal.
In the railway equipment business of the company the revenue showed upward trend by 21.1 per cent at Rs 477.2 crore in the FY 2019-20 as against Rs 394.1 crore in previous fiscal.
Sales from new product grew by 74.3 per cent in fiscal 2019-20. Revenue for the quarter ended March 2020 was up by 4.3 per cent at Rs 108.0 crore.
The company’s order book stood at Rs 500 crore on March 2020, which will be executed in the next 12~15 months.
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