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Results
01-Nov-21
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Analysis
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Escorts
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Net profit down 23.67%
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Consolidated
Net sales of Escorts for the quarter ended Sep 2021 has increased
1.19% to Rs 1673.85 crore over corresponding quarter of last year. Operating
profit margin has declined from 18.02% to 12.56%, leading to 29.46% decline in
operating profit to Rs 210.26 crore. Raw material cost as a % of
total sales (net of stock adjustments) increased from 57.57% to 65.02%.
Purchase of finished goods cost fell from 7.41% to 7.05%.
Employee cost decreased from 7.46% to 7.06%. Other
expenses rose from 10.25% to 10.47%. Other income rose 67.16% to Rs
65.51 crore. PBIDT fell 18.23% to Rs 275.77
crore. Provision for interest rose 8.75% to Rs 4.1
crore. PBDT fell 18.54% to Rs 271.67 crore. Provision
for depreciation rose 19.61% to Rs 33.49 crore. Profit
before tax down 22.03% to Rs 238.18 crore. Share of profit/loss was
279.21% lower at Rs -3.83 crore. Provision for tax was expense of Rs
60.88 crore, compared to Rs 77.26 crore. Effective tax rate was
25.98% compared to 25.37%. Minority interest decreased 14.29% to Rs 0.30
crore. Net profit attributable to owners of the company decreased
23.67% to Rs 173.17 crore.
Sales of Agri Machinery Products
segment has gone down 6.48% to Rs 1246.13 crore (accounting for 74.82% of total
sales). Sales of Railway Equipments segment rose 6.21% to Rs 170.16
crore (accounting for 10.22% of total sales). Sales of Construction
Equipment segment has gone up 58.81% to Rs 776.11 crore (accounting for 10.22%
of total sales).
Profit before interest, tax and
other unallocable items (PBIT) fell 24.47% to Rs 225.22 crore. PBIT
of Agri Machinery Products segment rose 28.92% to Rs 186.90 crore (accounting
for 82.99% of total PBIT). PBIT of Railway Equipments segment fell
9.63% to Rs 29.37 crore (accounting for 13.04% of total PBIT). PBIT
of Construction Equipment segment rose 227.84% to Rs 8.95 crore (accounting for
3.97% of total PBIT).
PBIT margin of Agri Machinery Products
segment fell from 19.73% to 15%. PBIT margin of Railway Equipments
segment fell from 29.29% to 17.26%. PBIT margin of Construction
Equipment segment rose from 1.74% to 3.59%. Overall PBIT margin fell
from 18.08% to 13.52%.
Half-yearly performance
Net sales (including other operating income) of Escorts has increased 23.04% to
Rs 3375.64 crore. Operating profit margin has declined from 15.31% to
13.23%, leading to 6.34% rise in operating profit to Rs 446.66
crore. Raw material cost as a % of total sales (net of stock
adjustments) increased from 54.75% to 64.19%. Purchase of finished
goods cost fell from 7.77% to 6.73%. Employee cost decreased from
10.03% to 7.43%. Other expenses fell from 11.09% to 9.91%.
Other income rose 63.84% to Rs 114.33 crore. PBIDT rose
14.53% to Rs 560.99 crore. Provision for interest rose 46.33% to Rs
7.58 crore. PBDT rose 14.19% to Rs 553.41
crore. Provision for depreciation rose 16.69% to Rs 65.44
crore. Profit before tax grew 13.86% to Rs 487.97
crore. Share of profit/loss was 478.05% lower at Rs -14.22
crore. Provision for tax was expense of Rs 121.83 crore, compared to
Rs 106.3 crore. Effective tax rate was 25.72% compared to 24.95%. Minority
interest increased 19.15% to Rs 0.56 crore. Net profit attributable
to owners of the company increased 10.03% to Rs 351.36 crore.
Sales of Agri Machinery Products
segment has gone up 11.83% to Rs 2582.43 crore (accounting for 79.17% of total
sales). Sales of Railway Equipments segment rose 34.60% to Rs 289.56
crore (accounting for 8.88% of total sales). Sales of Construction
Equipment segment has gone up 86.25% to Rs 390.02 crore (accounting for 11.96%
of total sales).
Profit before
interest, tax and other unallocable items (PBIT) has jumped 9.23% to Rs 462.65
crore. PBIT of Agri Machinery Products segment rose 1.62% to Rs
410.22 crore (accounting for 88.67% of total PBIT). PBIT of Railway
Equipments segment up 37.88% to Rs 46.77 crore (accounting for 10.11% of total
PBIT). PBIT of Construction Equipment segment stood at Rs 5.66
compared to loss of Rs 14.06 (accounting for 1.22% of total PBIT).
PBIT margin of Agri
Machinery Products segment fell from 19.73% to 15%. PBIT margin of
Railway Equipments segment rose from 15.77% to 16.15%. PBIT margin
of Construction Equipment segment rose from -6.71% to 1.45%. Overall
PBIT margin fell from 15.49% to 14.18%.
Other Highlights
In Q2 FY22 tractor volume fell 13.8% to 21073
units and construction volume went up 30.8% to 1074 units on YoY basis.
For H1 FY22 tractor volume went up 10.4% to
47008 units and construction volume went up 59.1% to 1680 units on YoY basis.
Order book for the railway division, at end
of September 2021, was more than Rs 310 crore.
In Q2 FY22, company’s domestic Tractor Market
Share stood at 9% compared to 9.8% in Q2 FY21.
During the quarter Capacity utilization in
EAM (Escorts Agri Machinery) segment was 90% plus and Capacity utilization in
ECE (Escorts Construction Equipment) segment was 45%.
Loan funds declined
from Rs 60.20 crore as of 30 September 2020 to Rs 55.22 crore as of 30
September 2021. Inventories rose to Rs 1,260.41 crore as of 30
September 2021 from Rs 708.89 crore as of 30 September 2020. Sundry
debtors were higher at Rs 825.81 crore as of 30 September 2021 compared to Rs
515.21 crore as of 30 September 2020. Cash and bank balance declined
from Rs 1,672.94 crore as of 30 September 2020 to Rs 309.73 crore as of 30
September 2021. Investments rose to Rs 2,387.77 crore as of 30
September 2021 from Rs 1,247.47 crore as of 30 September 2020 . Fixed
assets increased to Rs 1,829.02 crore as of 30 September 2021 from Rs 1,779.74
crore as of 30 September 2020. Intangible assets declined from Rs
52.01 crore to Rs 51.17 crore.
Equity capital stood
at Rs 134.83 crore as of 30 September 2021 to Rs 134.83 crore as of 30
September 2020. Per share face Value remained same at Rs
10.00.
Promoters’ stake was
36.59% as of 30 September 2021 ,compared to 36.59% as of 30 September 2020
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Management
commentary: Speaking
on the results, Chairman and managing Director Mr. Nikhil Nanda said, “Industry
is constantly changing and adapting to the fast-changing environment. There is
a positive sentiment across industry, and we feel, tractor and Agri equipment
industry is clawing back to a sustained momentum and growth path. We hope the
festivity around will also propel the demand and distribution. PM Gati Shakti
National Master Plan will also help to push infrastructure segment with
logistics ease and multimodal connectivity. We are witnessing encouraging
developments in construction and railway equipment segment too and are hopeful
of a wider recovery soon. We still maintain our preparedness with all safety
protocols and guidelines and are well aligned with national efforts.”
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Escorts
: Consolidated Results
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2109 (3)
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2009 (3)
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Var (%)
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2109 (6)
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2009 (6)
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Var (%)
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2103 (12)
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2003 (12)
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Var (%)
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Sales
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1673.85
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1654.18
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1.19%
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3375.64
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2743.44
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23.04%
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7014.42
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5810.09
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20.73%
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OPM (%)
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12.56%
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18.02%
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-546 bps
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13.23%
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15.31%
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-208 bps
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16.06%
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11.40%
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466 bps
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OP
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210.26
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298.06
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-29.46%
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446.66
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420.04
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6.34%
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1126.76
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662.4
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70.10%
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Other inc.
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65.51
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39.19
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67.16%
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114.33
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69.78
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63.84%
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160.38
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97.6
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64.32%
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PBIDT
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275.77
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337.25
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-18.23%
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560.99
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489.82
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14.53%
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1287.14
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760
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69.36%
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Interest
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4.10
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3.77
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8.75%
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7.58
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6.18
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22.65%
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13.34
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17.23
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-22.58%
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PBDT
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271.67
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333.48
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-18.53%
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553.41
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483.64
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14.43%
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1273.8
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742.77
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71.49%
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Dep.
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33.49
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28.00
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19.61%
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65.44
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55.08
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18.81%
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118.28
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107.22
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10.32%
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PBT
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238.18
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305.48
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-22.03%
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487.97
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428.56
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13.86%
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1155.52
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635.55
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81.81%
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Share of profit/loss from JV
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-3.83
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-1.01
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279.21%
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-14.22
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-2.46
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478.05%
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-0.74
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-1.08
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-31.48%
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PBT Befor EO
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234.35
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304.47
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-23.03%
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473.75
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426.10
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11.18%
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1154.78
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634.47
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82.01%
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Execptional items
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0.00
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0.00
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0.00%
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0.00
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0.00
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0.00%
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0
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9.22
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LP
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PBT After EO
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234.35
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304.47
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-23.03%
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473.75
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426.10
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11.18%
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1154.78
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625.25
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84.69%
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Total Tax
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60.88
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77.25
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-21.19%
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121.83
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106.30
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14.61%
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283.15
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153.53
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84.43%
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PAT
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173.47
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227.22
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-23.66%
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351.92
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319.80
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10.04%
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871.63
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471.72
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84.78%
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Minority Interest
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0.30
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0.35
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-14.29%
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0.56
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0.47
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19.15%
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0.17
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-0.53
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LP
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Net Profit
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173.17
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226.87
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-23.67%
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351.36
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319.33
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10.03%
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871.46
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472.25
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84.53%
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EPS (Rs)*
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64.63
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35.54
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* EPS is on current equity of Rs
134.83 crore, Face value of Rs. 10 Each
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# EPS is not annualised due to
seasonality of business
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EO: Extraordinary items. EPS is calculated
after excluding EO and relevant tax
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BPS- Basis points
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LP: Loss to profit
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PL: Profit to Loss
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Figures in Rs crore
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Source: Capitaline Corporate
Database
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Escorts : Consolidated Segment results
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Sales
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% of Total 2109(3)
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2109 (3)
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2009(3)
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Var. (%)
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% of Total 2109(6)
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2109 (6)
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2009(6)
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Var. (%)
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% of Total 2103(12)
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2103 (12)
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2003(12)
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Var. (%)
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Agri machinery Products
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74.82%
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1246.13
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1332.50
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-6.48%
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79.17%
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2582.43
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2309.21
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11.83%
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82.04%
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5732.26
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4472.49
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28.17%
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Construction Equipment
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14.96%
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249.20
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156.92
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58.81%
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11.96%
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390.02
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209.41
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86.25%
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11.11%
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776.11
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839.76
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-7.58%
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Railway Equipments
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10.22%
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170.16
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160.21
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6.21%
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8.88%
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289.56
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215.12
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34.60%
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6.85%
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478.96
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477.22
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0.36%
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Total Reportable Segment
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1665.49
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1649.63
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0.96%
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3262.01
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2733.74
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19.32%
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6987.33
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5789.47
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20.69%
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Un allocated
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10.85
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4.55
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138.46%
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16.12
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9.70
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0.00%
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27.09
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20.69
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0.00%
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Total
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1676.34
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1654.18
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1.34%
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3278.13
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2743.44
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19.49%
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7014.42
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5810.16
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20.73%
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Less: Inter segment revenues
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2.49
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0.00
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PL
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2.49
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0.00
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0.00%
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0.00
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0.07
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0.00%
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Net sales
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1673.85
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1654.18
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1.19%
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3275.64
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2743.44
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19.40%
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7014.42
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5810.09
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20.73%
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PBIT
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Agri machinery Products
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82.99%
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186.90
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262.95
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-28.92%
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88.67%
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410.22
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403.69
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1.62%
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90.80%
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1032.55
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572.49
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80.36%
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Construction Equipment
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3.97%
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8.95
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2.73
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227.84%
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1.22%
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5.66
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-14.06
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-140.26%
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2.45%
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27.81
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30.22
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-7.97%
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Railway Equipments
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13.04%
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29.37
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32.50
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-9.63%
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10.11%
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46.77
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33.92
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37.88%
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6.75%
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76.75
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85.83
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-10.58%
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Total
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225.22
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298.18
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-24.47%
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462.65
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423.55
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9.23%
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1137.11
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688.54
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65.15%
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Add/(Less): Exceptional Items [net
credit/(charge)]
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0.00
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0.00
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0.00%
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0.00
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0.00
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0.00%
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0.00
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9.22
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-100.00%
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Less: Finance cost
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4.10
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3.77
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8.75%
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7.58
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6.18
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22.65%
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13.34
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17.23
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-22.58%
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Add/ (less):unallocable income net
of unallocable expenditure
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-13.23
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-10.06
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31.51%
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-18.68
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-8.73
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113.97%
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-31.01
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36.84
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-184.17%
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PBT
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234.35
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304.47
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-23.03%
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473.75
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426.10
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11.18%
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1154.78
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625.25
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84.69%
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LP: Loss to profit
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PL: Profit to Loss
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Figures in Rs crore
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Source: Capitaline Corporate
Database
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Previous News |
Escorts Kubota
(
Analyst Meet / AGM
-
Conference Call
09-May-24
18:09
)
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Escorts Kubota April sales slide to 7,515 units
(
Hot Pursuit
-
02-May-24
10:28
)
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Escorts Kubota achieves 7.2% growth in Oct tractor sales
(
Corporate News
-
01-Nov-22
09:07
)
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Escorts Kubota tractors sales decline by 16.7% in Mar'24
(
Corporate News
-
01-Apr-24
09:29
)
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Escorts Kubota consolidated net profit rises 125.95% in the September 2023 quarter
(
Results
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Announcements
03-Nov-23
15:49
)
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|
Escorts Kubota tractors sales fall 17% in Feb'24
(
Corporate News
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01-Mar-24
09:28
)
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Board of Escorts Kubota recommends Final Dividend
(
Corporate News
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09-May-24
15:08
)
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Escorts showcases its robust product portfolio at EXCON 2022
(
Corporate News
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17-May-22
11:42
)
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Escorts Kubota to declare Quarterly Result
(
Corporate News
-
17-Oct-23
10:57
)
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Escorts Kubota Ltd soars 2.92%, up for fifth straight session
(
Hot Pursuit
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02-Sep-22
13:01
)
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Escorts Kubota records 8.5% decline in tractor sales in Aug'23
(
Corporate News
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01-Sep-23
09:08
)
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Other Stories |
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