|
For the quarter ending Dec 2021,
consolidated net sales (including other operating income) of Escorts has declined 2.84% to Rs 1984.28 crore compared to quarter ended Dec 2020. Sales of Agri Machinery Products segment has gone down 8.57% to Rs 1,526.85 crore (accounting for 77.24% of total sales). Sales of Railway Equipments segment rose 48.11% to Rs 173.85 crore (accounting for 8.79% of total sales). Sales of Construction Equipment segment has gone up 12.85% to Rs 276.18 crore (accounting for 13.97% of total sales). Profit before interest, tax and other unallocable items (PBIT) has slumped 26.26% to Rs 270.30 crore. PBIT of Agri Machinery Products segment fell 28.38% to Rs 238.66 crore (accounting for 88.29% of total PBIT). PBIT of Railway Equipments segment rose 67.29% to Rs 24.86 crore (accounting for 9.20% of total PBIT). PBIT of Construction Equipment segment fell 63.27% to Rs 6.78 crore (accounting for 2.51% of total PBIT). PBIT margin of Agri Machinery Products segment fell from 19.95% to 15.63%. PBIT margin of Railway Equipments segment rose from 12.66% to 14.30%. PBIT margin of Construction Equipment segment fell from 7.54% to 2.45%. Overall PBIT margin fell from 18.04% to 13.67%. Operating profit margin has declined from 17.77% to 13.33%, leading to 27.11% decline in operating profit to Rs 264.51 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 60.29% to 58.48%. Purchase of finished goods cost rose from 5.69% to 7.36%. Employee cost increased from 6.71% to 7.84%. Other expenses rose from 9.80% to 11.14%. Other income fell 16.39% to Rs 40.72 crore. PBIDT fell 25.84% to Rs 305.23 crore. Provision for interest fell 2.79% to Rs 3.83 crore. PBDT fell 26.06% to Rs 301.4 crore. Provision for depreciation rose 3.05% to Rs 33.1 crore. Profit before tax down 28.55% to Rs 268.30 crore. Provision for tax was expense of Rs 67.91 crore, compared to Rs 96.07 crore. Effective tax rate was 25.96% compared to 25.12%. Minority interest decreased 65.52% to Rs -0.48 crore. Net profit attributable to owners of the company decreased 32.27% to Rs 194.19 crore. Promoters’ stake was 30.25% as of 31 December 2021 ,compared to 36.59% as of 31 December 2020 .
For year-to-date (YTD) results analysis.
Net sales (including other operating income) of Escorts has increased 12% to Rs 5359.92 crore. Sales of Agri Machinery Products segment has gone up 5.78% to Rs 4,209.28 crore (accounting for 78.84% of total sales). Sales of Railway Equipments segment rose 39.37% to Rs 463.41 crore (accounting for 8.68% of total sales). Sales of Construction Equipment segment has gone up 46.69% to Rs 666.20 crore (accounting for 12.48% of total sales). Profit before interest, tax and other unallocable items (PBIT) has slumped 7.23% to Rs 732.95 crore. PBIT of Agri Machinery Products segment fell 11.96% to Rs 648.88 crore (accounting for 88.53% of total PBIT). PBIT of Railway Equipments segment rose 47.14% to Rs 71.63 crore (accounting for 9.77% of total PBIT). PBIT of Construction Equipment segment rose 182.73% to Rs 12.44 crore (accounting for 1.70% of total PBIT). PBIT margin of Agri Machinery Products segment fell from 18.52% to 15.42%. PBIT margin of Railway Equipments segment rose from 14.64% to 15.46%. PBIT margin of Construction Equipment segment rose from 0.97% to 1.87%. Overall PBIT margin fell from 16.58% to 13.73%. Operating profit margin has declined from 16.36% to 13.27%, leading to 9.17% decline in operating profit to Rs 711.17 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 57.22% to 62.40%. Purchase of finished goods cost rose from 6.84% to 6.93%. Employee cost decreased from 8.55% to 7.56%. Other expenses fell from 10.51% to 10.30%. Other income rose 30.87% to Rs 155.05 crore. PBIDT fell 3.90% to Rs 866.22 crore. Provision for interest rose 12.75% to Rs 11.41 crore. PBDT fell 4.09% to Rs 854.81 crore. Provision for depreciation rose 13% to Rs 98.54 crore. Profit before tax down 5.95% to Rs 756.27 crore. Provision for tax was expense of Rs 189.74 crore, compared to Rs 202.37 crore. Effective tax rate was 25.80% compared to 25.03%.Minority interest decreased 55.56% to Rs 0.08 crore. Net profit attributable to owners of the company decreased 9.98% to Rs 545.55 crore. Promoters’ stake was 30.25% as of 31 December 2021 ,compared to 36.59% as of 31 December 2020 .
Full year results analysis.
Net sales (including other operating income) of Escorts has increased 20.73% to Rs 7014.42 crore. Sales of Agri Machinery Products segment has gone up 28.17% to Rs 5,732.26 crore (accounting for 82.04% of total sales). Sales of Railway Equipments segment rose 0.36% to Rs 478.96 crore (accounting for 6.85% of total sales). Sales of Construction Equipment segment has gone down 7.58% to Rs 776.11 crore (accounting for 11.11% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 65.15% to Rs 1,137.11 crore. PBIT of Agri Machinery Products segment rose 80.36% to Rs 1,032.55 crore (accounting for 90.80% of total PBIT). PBIT of Railway Equipments segment fell 10.58% to Rs 76.75 crore (accounting for 6.75% of total PBIT). PBIT of Construction Equipment segment fell 7.97% to Rs 27.81 crore (accounting for 2.45% of total PBIT). PBIT margin of Agri Machinery Products segment rose from 12.80% to 18.01%. PBIT margin of Railway Equipments segment fell from 17.99% to 16.02%. PBIT margin of Construction Equipment segment fell from 3.60% to 3.58%. Overall PBIT margin rose from 11.89% to 16.27%. Operating profit margin has jumped from 11.40% to 16.06%, leading to 70.10% rise in operating profit to Rs 1,126.76 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 59.77% to 59.16%. Purchase of finished goods cost rose from 6.37% to 6.42%. Employee cost decreased from 8.95% to 7.94%. Other expenses fell from 13.52% to 10.11%. Other income rose 64.32% to Rs 160.38 crore. PBIDT rose 69.36% to Rs 1287.14 crore. Provision for interest fell 22.58% to Rs 13.34 crore. Loan funds rose to Rs 60.61 crore as of 31 March 2021 from Rs 46.92 crore as of 31 March 2020. Inventories declined from Rs 883.36 crore as of 31 March 2020 to Rs 718.16 crore as of 31 March 2021. Sundry debtors were lower at Rs 657.58 crore as of 31 March 2021 compared to Rs 731.86 crore as of 31 March 2020. Cash and bank balance rose to Rs 1,321.76 crore as of 31 March 2021 from Rs 324.88 crore as of 31 March 2020. Investments rose to Rs 1,938.02 crore as of 31 March 2021 from Rs 797.36 crore as of 31 March 2020 . PBDT rose 71.49% to Rs 1273.8 crore. Provision for depreciation rose 10.32% to Rs 118.28 crore. Fixed assets increased to Rs 1,808.60 crore as of 31 March 2021 from Rs 1,774.05 crore as of 31 March 2020. Intangible assets declined from Rs 53.02 crore to Rs 52.32 crore. Profit before tax grew 81.81% to Rs 1,155.52 crore. Share of profit/loss was 31.48% higher at Rs -0.74 crore. Provision for tax was expense of Rs 283.15 crore, compared to Rs 153.53 crore. Effective tax rate was 24.52% compared to 24.55%. Net profit attributable to owners of the company increased 84.53% to Rs 871.46 crore. Equity capital increased from Rs 122.58 crore as of 31 March 2020 to Rs 134.83 crore as of 31 March 2021. Per share face Value remained same at Rs 10.00. Promoters’ stake was 36.59% as of 31 March 2021 ,compared to 40.25% as of 31 March 2020 . Cash flow from operating activities increased to Rs 1,131.26 crore for year ended March 2021 from Rs 797.16 crore for year ended March 2020. Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 125.59 crore, compared to Rs 195.42 crore during the year ended March 2020.
Other Highlights
Board of directors on July 15, 2020 approved
reduction of share capital of the Company by cancelling and extinguishing
1,22,57,688 equity shares, held by the Escorts Benefit and Welfare Trust.
During the current quarter, the Scheme has been approved by the Hon`ble NCL T
Bench, Chandigarh ("NCL T") vide its order dated December 23, 2021.
This has led to reduction in share capital from Rs 134.83 crore to Rs 122.58
crore.
The Board, on November 18,
2021, had approved the raising of equity capital through a preferential issue
of 93,63,726 equity shares (Proposed Issue) of face value Rs 10 at Rs 2,000 per
share (including a premium of Rs 1,990 for each equity share), to Kubota
Corporation, Japan, a company. CCI (Competition Commission of India) has
approved acquisition of equity in Escorts by Kubota corporation.
In Q3 FY22, Tractor volume fell 19.8% to 25,355
units and construction Volume fell 8.2% to 1,151 units on YoY basis.
For 9M FY22, Tractor volume fell 2.5% to 72,333
units and construction Volume rose 22.6% to 2,831 units on YoY basis.
Order book for the railway division, at end of
December 2021, was more than Rs 400 crore.
For 9M FY22, Capacity
utilization of EAM (Escorts Agri Machinery) segment was around 80%.
For 9M FY22, Capacity
utilization of ECE (Escorts Construction Equipment) segment was around 40%.
Management Comments :
Chairman and managing Director Mr. Nikhil Nanda
said, "The tractor industry has now been impacted for two consecutive
quarters due to high base of last year, delayed harvest of Kharif crops owing
to late monsoon rains this year which affected the rural cash flows and the
retail demand. Going forward, we do expect cash flows to improve with better
Kharif procurement and positive outlook with good Rabi sowing. While high
inflation remains a concern, we are hopeful of macro- economic factors to be in
favour of agriculture to boost rural demand. We continue to invest in new
product development and distribution spread to offer enhanced reach and
customer experience across domestic & global markets. Multiple initiatives
in agriculture and infrastructure development focus from government will be
helpful in creating opportunities across our agriculture, construction &
railway portfolio."
| Escorts : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202112 | 202012 | Var.(%) | 202112 | 202012 | Var.(%) | 202103 | 202003 | Var.(%) |
|---|
| Net Sales (including other operating income) | 1,984.28 | 2,042.23 | -2.84 | 5,359.92 | 4,785.67 | 12.00 | 7,014.42 | 5,810.09 | 20.73 | | OPM (%) | 13.33 | 17.77 | -444 bps | 13.27 | 16.36 | -309 bps | 16.06 | 11.40 | 466 bps | | OP | 264.51 | 362.89 | -27.11 | 711.17 | 782.93 | -9.17 | 1,126.76 | 662.40 | 70.10 | | Other Inc. | 40.72 | 48.70 | -16.39 | 155.05 | 118.48 | 30.87 | 160.38 | 97.60 | 64.32 | | PBIDT | 305.23 | 411.59 | -25.84 | 866.22 | 901.41 | -3.90 | 1,287.14 | 760.00 | 69.36 | | Interest | 3.83 | 3.94 | -2.79 | 11.41 | 10.12 | 12.75 | 13.34 | 17.23 | -22.58 | | PBDT | 301.40 | 407.65 | -26.06 | 854.81 | 891.29 | -4.09 | 1,273.80 | 742.77 | 71.49 | | Depreciation | 33.1 | 32.12 | 3.05 | 98.54 | 87.2 | 13.00 | 118.28 | 107.22 | 10.32 | | PBT | 268.30 | 375.53 | -28.55 | 756.27 | 804.09 | -5.95 | 1155.52 | 635.55 | 81.81 | | Share of Profit/(Loss) from Associates | -6.68 | 6.96 | PL | -20.9 | 4.5 | PL | -0.74 | -1.08 | 31.48 | | PBT before EO | 261.62 | 382.49 | -31.60 | 735.37 | 808.59 | -9.06 | 1154.78 | 634.47 | 82.01 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | -9.22 | - | | PBT after EO | 261.62 | 382.49 | -31.60 | 735.37 | 808.59 | -9.06 | 1154.78 | 625.25 | 84.69 | | Taxation | 67.91 | 96.07 | -29.31 | 189.74 | 202.37 | -6.24 | 283.15 | 153.53 | 84.43 | | PAT | 193.71 | 286.42 | -32.37 | 545.63 | 606.22 | -9.99 | 871.63 | 471.72 | 84.78 | | Minority Interest (MI) | -0.48 | -0.29 | -65.52 | 0.08 | 0.18 | -55.56 | 0.17 | -0.53 | PL | | Net profit | 194.19 | 286.71 | -32.27 | 545.55 | 606.04 | -9.98 | 871.46 | 472.25 | 84.53 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 194.19 | 286.71 | -32.27 | 545.55 | 606.04 | -9.98 | 871.46 | 472.25 | 84.53 | | EPS (Rs)* | 14.40 | 21.26 | -32.27 | 40.46 | 44.95 | -9.98 | 64.63 | 35.54 | 81.85 | | | * EPS is on current equity of Rs 134.83 crore, Face value of Rs 10, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
|
| Escorts : Consolidated Segment Results | td>-| | Quarter ended | Year to Date | Year ended |
|---|
| % of (Total) | 202112 | 202012 | Var.(%) | % of (Total) | 202112 | 202012 | Var.(%) | % of (Total) | 202103 | 202003 | Var.(%) |
|---|
| Sales | | Agri Machinery Products | 77.24 | 1,526.85 | 1,670.00 | -8.57 | 78.84 | 4,209.28 | 3,979.21 | 5.78 | 82.04 | 5,732.26 | 4,472.49 | 28.17 | | Auto Ancillary Products | 0.00 | 0.00 | 0.00 | - | | Railway Equipments | 8.79 | 173.85 | 117.38 | 48.11 | 8.68 | 463.41 | 332.50 | 39.37 | 6.85 | 478.96 | 477.22 | 0.36 | | Construction Equipment | 13.97 | 276.18 | 244.73 | 12.85 | 12.48 | 666.20 | 454.14 | 46.69 | 11.11 | 776.11 | 839.76 | -7.58 | | Total Reported Sales | 100.00 | 1,976.88 | 2,032.11 | -2.72 | 100.00 | 5,338.89 | 4,765.85 | 12.02 | 100.00 | 6,987.33 | 5,789.47 | 20.69 | | Less: Inter segment revenues | | 3.50 | 0.00 | - | | 6.05 | 0.00 | | 0.00 | 0.07 | - | | Net Sales | 100.00 | 1,973.38 | 2,032.11 | -2.89 | 100.00 | 5,332.84 | 4,765.85 | 11.90 | 100.00 | 6,987.33 | 5,789.40 | 20.69 | | PBIT | | Agri Machinery Products | 88.29 | 238.66 | 333.22 | -28.38 | 88.53 | 648.88 | 737.01 | -11.96 | 90.80 | 1,032.55 | 572.49 | 80.36 | | Auto Ancillary Products | 0.00 | 0.00 | 0.00 | - | | Railway Equipments | 9.20 | 24.86 | 14.86 | 67.29 | 9.77 | 71.63 | 48.68 | 47.14 | 6.75 | 76.75 | 85.83 | -10.58 | | Construction Equipment | 2.51 | 6.78 | 18.46 | -63.27 | 1.70 | 12.44 | 4.40 | 182.73 | 2.45 | 27.81 | 30.22 | -7.97 | | Total PBIT | 100.00 | 270.30 | 366.54 | -26.26 | 100.00 | 732.95 | 790.09 | -7.23 | 100.00 | 1,137.11 | 688.54 | 65.15 | | Less : Interest | | 3.83 | 3.94 | -2.79 | | 11.41 | 10.12 | 12.75 | | 13.34 | 17.23 | -22.58 | | Add: Other un-allcoable | | -4.85 | 19.89 | PL | | 13.83 | 28.62 | -51.68 | | 31.01 | -46.06 | LP | | PBIT Margin(%) | | Agri Machinery Products | | 15.63 | 19.95 | -432.24 | | 15.42 | 18.52 | -310.61 | | 18.01 | 12.80 | 521.27 | | Auto Ancillary Products | | 0.00 | 0.00 | 0.00 | | Railway Equipments | | 14.30 | 12.66 | 163.99 | | 15.46 | 14.64 | 81.66 | | 16.02 | 17.99 | -196.11 | | Construction Equipment | | 2.45 | 7.54 | -508.81 | | 1.87 | 0.97 | 89.84 | | 3.58 | 3.60 | -1.54 | | PBT | 100.00 | 261.62 | 382.49 | -31.60 | 100.00 | 735.37 | 808.59 | -9.06 | 100.00 | 1,154.78 | 625.25 | 84.69 |
|
|