EBIDTA grew 62.2% to Rs 326.9 crore in Q1 FY24 from Rs 201.6 crore reported in Q1 FY23, led by operating leverage and softening in commodity prices. EBIDTA margin improved to 14% in Q1 FY24 as compared with 10% registered in the same period last year.

In Escorts Agri Machinery segment, tractor volumes at 26,582 units went up by 7.3% as against 26,797 units in the corresponding period last year. The segment revenue grew 4.5% to Rs 1,666.8 crore in the quarter ended June 2023 as against Rs 1,595.8 crore in corresponding period last year. EBIT margin for Q1 FY24 came at 13.4% as compared to 10.6% in the same quarter previous year, led by better realization and softening in commodity prices.

Construction Equipment sales were up by 42.1% to 1,373 units as against 966 units in corresponding period last year. The segment revenues jumped 46.3% at Rs 360.1 crore in quarter ending June 2023 as against Rs 246.1 crore in corresponding period last year. EBIT margin grew to 7.6% as against 1% in corresponding period last year.

The company's revenue for railways product segment came at Rs 297.7 crore, up by 71.8% as against Rs 173.4 crore in corresponding period last year. EBIT margin was up to 20.9% in quarter ended June 2023 as against 13.6% in corresponding period last year. Order book for the division was approximately Rs 950 crore at the end of June 2023.

On consolidated basis, the tractor maker's consolidated net profit zoomed 106.2% to Rs 289.89 crore on 15.9% increase in revenue from operations to Rs 2,355.17 crore in Q1 FY24 over Q1 FY23.

Nikhil Nanda, chairman and managing director of Escorts Kubota, said, “In the agri business, overall sentiments were mixed last quarter as markets with good rainfall and crop prices showed good momentum, and markets with a delayed monsoon had a slightly dampened demand. Going forward, with further advancement of monsoon across the country, adequate reservoir levels, better liquidity, and consumer credit availability, we expect the demand momentum to improve.

Construction business has done well and is poised well for further growth with government thrust and focus on faster execution of infrastructure projects. The demand for construction machinery is still buoyant and post monsoon, we expect the momentum to further accelerate. Railway business, with innovative products and expanded portfolio is well aligned with growing requirements of rail transport both on domestic and international front and continues to grow. Our investments will continue towards sustainable products and solutions, expanded portfolio, enhanced customer reach and product experience.”

Seiji Fukuoka, deputy managing director of Escorts Kubota, said, “In addition to our domestic business growth, we are strategically aligning our efforts to leverage on our export network for further impetus and open new opportunities. Innovative product line expanded coverage and quality excellence remains our top priority. Capacity built-up and process optimization will help us in further growth and create new benchmarks in customer experience.”

Escorts Kubota is an engineering conglomerate. The company has diversified business across three different verticals viz., agri machinery, construction equipment & railway equipment division.

The scrip closed 0.83% higher at Rs 2,561.35 on the BSE.