For the quarter ending June
2023, consolidated Net sales (including other operating income) of Escorts Kubota has increased 15.90% to Rs 2355.17 crore compared to quarter ended June 2022. Sales of Agri Machinery Products segment has gone up 5.13% to Rs 1693.54 crore (accounting for 72.02% of total sales). Sales of Railway Equipments segment rose 71.76% to Rs 297.74 crore (accounting for 12.66% of total sales). Sales of Construction Equipment segment has gone up 46.30% to Rs 360.10 crore (accounting for 15.31% of total sales). Inter-segment sales fell from Rs 1.82 crore to Rs 0.51 crore. Profit before interest, tax and other unallocable items (PBIT) jumped 60.95% to Rs 317.58 crore. PBIT of Agri Machinery Products segment jumped 33.04% to Rs 228.01 crore (accounting for 71.80% of total PBIT). PBIT of Railway Equipments segment rose 165.26% to Rs 62.31 crore (accounting for 19.62% of total PBIT). PBIT of Construction Equipment segment rose 1017.21% to Rs 27.26 crore (accounting for 8.58% of total PBIT).
PBIT margin of Agri Machinery Products segment jumped from 10.64% to 13.46%. PBIT margin of Railway Equipments segment up from 13.55% to 20.93%. PBIT margin of Construction Equipment segment rose from 0.99% to 7.57%. Overall PBIT margin up from 9.72% to 13.51%.
Operating profit margin has jumped from 10.02% to 14.06%, leading to 62.59% rise in operating profit to Rs 331.05 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 67.35% to 63.59%. Purchase of finished goods cost fell from 5.92% to 5.31%. Employee cost increased from 6.55% to 6.62%. Other expenses fell from 10.62% to 10.00%. Other income rose 165.62% to Rs 94.35 crore. PBIDT rose 77.89% to Rs 425.4 crore. Provision for interest rose 7.19% to Rs 3.43 crore.
PBDT rose 78.85% to Rs 421.97 crore. Provision for depreciation rose 9.45% to Rs 40.3 crore.
Profit before tax grew 91.69% to Rs 381.67 crore. Provision for tax was expense of Rs 96.45 crore, compared to Rs 50.95 crore. Effective tax rate was 24.97% compared to 26.60%.
Minority interest increased 80% to Rs -0.01 crore. Net profit attributable to owners of the company increased 106.13% to Rs 289.90 crore. Promoters’ stake was 67.64% as of 30 June 2023 ,compared to 72.90% as of 30 June 2022 .
Full year results analysis.
Net sales (including other operating income) of Escorts Kubota has increased 15.74% to Rs 8428.69 crore. Sales of Agri Machinery Products segment has gone up 13.64% to Rs 6,397.08 crore (accounting for 75.99% of total sales). Sales of Railway Equipments segment rose 32.32% to Rs 841.86 crore (accounting for 10.00% of total sales). Sales of Construction Equipment segment has gone up 19.48% to Rs 1,178.98 crore (accounting for 14.01% of total sales). Inter-segment sales rose Rs 7.48 crore to Rs 8.81 crore. Profit before interest, tax and other unallocable items (PBIT) has slumped 23.98% to Rs 743.32 crore. PBIT of Agri Machinery Products segment fell 30.97% to Rs 593.32 crore (accounting for 79.82% of total PBIT). PBIT of Railway Equipments segment rose 22.85% to Rs 115.87 crore (accounting for 15.59% of total PBIT). PBIT of Construction Equipment segment rose 42.98% to Rs 34.13 crore (accounting for 4.59% of total PBIT).
PBIT margin of Agri Machinery Products segment fell from 15.27% to 9.27%. PBIT margin of Railway Equipments segment fell from 14.83% to 13.76%. PBIT margin of Construction Equipment segment rose from 2.42% to 2.89%. Overall PBIT margin fell from 13.48% to 8.83%.
Operating profit margin has declined from 13.67% to 9.22%, leading to 21.89% decline in operating profit to Rs 777.52 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 61.70% to 67.22%. Purchase of finished goods cost fell from 6.95% to 5.94%. Employee cost decreased from 7.37% to 7.07%. Other expenses rose from 10.43% to 10.72%. Other income rose 61.64% to Rs 280.93 crore. PBIDT fell 9.47% to Rs 1058.45 crore. Provision for interest fell 11.36% to Rs 13.27 crore. Loan funds rose to Rs 57.30 crore as of 31 March 2023 from Rs 51.95 crore as of 31 March 2022. Inventories rose to Rs 1,217.68 crore as of 31 March 2023 from Rs 846.56 crore as of 31 March 2022. Sundry debtors were higher at Rs 1,179.65 crore as of 31 March 2023 compared to Rs 792.62 crore as of 31 March 2022. Cash and bank balance rose to Rs 471.90 crore as of 31 March 2023 from Rs 271.84 crore as of 31 March 2022. Investments declined from Rs 4,835.84 crore as of 31 March 2022 to Rs 4,766.69 crore as of 31 March 2023.
PBDT fell 9.45% to Rs 1045.18 crore. Provision for depreciation rose 13.63% to Rs 150.06 crore. Fixed assets increased to Rs 1,931.47 crore as of 31 March 2023 from Rs 1,873.58 crore as of 31 March 2022. Intangible assets increased from Rs 55.27 crore to Rs 73.36 crore.
Profit before tax down 12.43% to Rs 895.12 crore. Share of profit/loss was 74.51% higher at Rs -7.48 crore. Provision for tax was expense of Rs 197.94 crore, compared to Rs 257.22 crore. Effective tax rate was 23.72% compared to 25.91%.
Minority interest increased 84.88% to Rs -0.13 crore. Net profit attributable to owners of the company decreased 13.54% to Rs 636.78 crore.
Equity capital stood at Rs 131.94 crore as of 31 March 2023 to Rs 131.94 crore as of 31 March 2022. Per share face Value remained same at Rs 10.00.
Promoters’ stake was 72.90% as of 31 March 2023 ,compared to 28.10% as of 31 March 2022 .
Cash flow from operating activities increased to Rs 223.91 crore for year ended March 2023 from Rs 32.28 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 218.79 crore, compared to Rs 186.34 crore during the year ended March 2022.
Other Highlights
Board on February 18, 2022
approved selective reduction of share capital of the Company by cancelling and
extinguishing 2,14,42,343 Equity Shares, held by the Escorts Benefit and
Welfare Trust. During Q1 FY24, the
Scheme has been approved by the Tribunal vide its order dated May 25, 2023.
Accordingly, this has led to change in share capital from Rs 131.94 to Rs
110.5.
In Q1 FY24, tractor volume
remained flat to 26,582 units and construction Volume increased 42.1% YoY to
1373 units.
In Q1 FY24, railway revenue
increased 71.8% YoY to Rs 277.7 crore.
Domestic Tractor Market Share
in Q1 FY24 stood at 9.7% compared to 9.3% in Q1 FY23.
Order book for the railway
division, at end of June 2023, was more than Rs 950 crore.
Agri
Machinery Business Division in July 2023 sold 5,570 tractors up by 3.9% as
against 5,360 tractors sold in July 2022.
Construction
Equipment Business Division in July 2023 sold 465 machines, registering a
growth of 54% as against 302 machines sold in July 2022.