For
the quarter ending June 2022, consolidated net sales (including other operating income) of Escorts Kubota has increased 19.02% to Rs 2032.06 crore compared to quarter ended june 2021. Sales of Agri Machinery Products segment has gone up 11.75% to Rs 1,610.91 crore (accounting for 79.34% of total sales). Sales of Railway Equipments segment rose 45.18% to Rs 173.35 crore (accounting for 8.54% of total sales). Sales of Construction Equipment segment has gone up 74.48% to Rs 246.14 crore (accounting for 12.12% of total sales). Profit before interest, tax and other unallocable items (PBIT) has slumped 16.90% to Rs 197.31 crore. PBIT of Agri Machinery Products segment fell 23.26% to Rs 171.38 crore (accounting for 86.86% of total PBIT). PBIT of Railway Equipments segment rose 35.00% to Rs 23.49 crore (accounting for 11.91% of total PBIT). PBIT of Construction Equipment reported profit of Rs 2.44 crore compared to loss of Rs 3.29 crore.
PBIT margin of Agri Machinery Products segment fell from 15.49% to 10.64%. PBIT margin of Railway Equipments segment fell from 14.57% to 13.55%. PBIT margin of Construction Equipment segment rose from negative 2.33% to 0.99%. Overall PBIT margin fell from 13.95% to 9.72%.
Operating profit margin has declined from 14.17% to 10.02%, leading to 15.84% decline in operating profit to Rs 203.61 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 63.05% to 67.35%. Purchase of finished goods cost fell from 6.36% to 5.92%. Employee cost decreased from 7.83% to 6.55%. Other expenses rose from 9.25% to 10.62%. Other income fell 17.95% to Rs 35.52 crore. PBIDT fell 16.16% to Rs 239.13 crore. Provision for interest fell 8.05% to Rs 3.2 crore.
PBDT fell 16.26% to Rs 235.93 crore. Provision for depreciation rose 15.24% to Rs 36.82 crore.
Profit before tax down 20.29% to Rs 199.11 crore. Share of profit/loss was 27.14% higher at Rs -7.57 crore. Provision for tax was expense of Rs 50.95 crore, compared to Rs 60.95 crore. Effective tax rate was 26.60% compared to 25.46%.
Net profit attributable to owners of the company decreased 21.07% to Rs 140.64 crore. Promoters’ stake was 72.90% as of 30 June 2022 ,compared to 36.59% as of 30 June 2021 .
Full year results analysis.
Net sales (including other operating income) of Escorts Kubota has increased 3.82% to Rs 7282.65 crore. Sales of Agri Machinery Products segment has gone down 1.80% to Rs 5,629.34 crore (accounting for 77.62% of total sales). Sales of Railway Equipments segment rose 32.83% to Rs 636.21 crore (accounting for 8.77% of total sales). Sales of Construction Equipment segment has gone up 27.15% to Rs 986.79 crore (accounting for 13.61% of total sales). Profit before interest, tax and other unallocable items (PBIT) has slumped 14.02% to Rs 977.74 crore. PBIT of Agri Machinery Products segment fell 16.75% to Rs 859.55 crore (accounting for 87.91% of total PBIT). PBIT of Railway Equipments segment rose 22.89% to Rs 94.32 crore (accounting for 9.65% of total PBIT). PBIT of Construction Equipment segment fell 14.17% to Rs 23.87 crore (accounting for 2.44% of total PBIT).
PBIT margin of Agri Machinery Products segment fell from 18.01% to 15.27%. PBIT margin of Railway Equipments segment fell from 16.02% to 14.83%. PBIT margin of Construction Equipment segment fell from 3.58% to 2.42%. Overall PBIT margin fell from 16.27% to 13.48%.
Operating profit margin has declined from 16.06% to 13.67%, leading to 11.66% decline in operating profit to Rs 995.41 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 59.16% to 61.70%. Purchase of finished goods cost rose from 6.42% to 6.95%. Employee cost decreased from 7.94% to 7.37%. Other expenses rose from 10.11% to 10.43%. Other income rose 8.37% to Rs 173.8 crore. PBIDT fell 9.16% to Rs 1169.21 crore. Provision for interest rose 12.22% to Rs 14.97 crore. Loan funds declined from Rs 60.61 crore as of 31 March 2021 to Rs 51.95 crore as of 31 March 2022. Inventories rose to Rs 846.56 crore as of 31 March 2022 from Rs 718.16 crore as of 31 March 2021. Sundry debtors were higher at Rs 792.62 crore as of 31 March 2022 compared to Rs 657.58 crore as of 31 March 2021. Cash and bank balance declined from Rs 1,321.76 crore as of 31 March 2021 to Rs 271.84 crore as of 31 March 2022. Investments rose to Rs 4,835.84 crore as of 31 March 2022 from Rs 1,938.02 crore as of 31 March 2021 .
PBDT fell 9.39% to Rs 1154.24 crore. Provision for depreciation rose 11.65% to Rs 132.06 crore. Fixed assets increased to Rs 1,873.58 crore as of 31 March 2022 from Rs 1,808.60 crore as of 31 March 2021. Intangible assets increased from Rs 52.32 crore to Rs 55.27 crore.
Profit before tax down 11.54% to Rs 1,022.18 crore. Share of profit/loss was 3,866.22% lower at Rs -29.35 crore. Provision for tax was expense of Rs 257.22 crore, compared to Rs 283.15 crore. Effective tax rate was 25.91% compared to 24.52%.
Net profit attributable to owners of the company decreased 15.49% to Rs 736.47 crore.
Equity capital decreased from Rs 134.83 crore as of 31 March 2021 to Rs 131.94 crore as of 31 March 2022 . Per share face Value remained same at Rs 10.00.
Promoters’ stake was 28.10% as of 31 March 2022 ,compared to 36.59% as of 31 March 2021 .
Cash flow from operating activities decreased to Rs 32.28 crore for year ended March 2022 from Rs 1,128.66 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 186.34 crore, compared to Rs 125.59 crore during the year ended March 2021.
Other Highlights
In Q1 FY23, Domestic tractor
volume increased by 0.4% to 24,608 units and export tractor volumes up by 52.5%
to 2,189 units, highest ever in any quarter.
Domestic Tractor Market Share
in Q1 FY23 stood at 9.3% compared to 10.7% in Q1 FY22.
In Q1 FY23, construction
Volume increased by 59% to 966 units on YoY basis.
Order book for the railway
division, at end of June 2022, was more than Rs 850 crore.
For Q1 FY23, Capacity
utilization of EAM (Escorts Agri Machinery) segment was around 90% and
capacity utilization of Construction Equipment segment was around 40%.