Segmental Performance for the Dec 18 quarter

For the quarter, sales from the Agri Machinery Product Segment stood at Rs 1292.55 crore, up by 36% YoY and accounted for 78% of sales. PBIT from the same was up by 33% to Rs 184.59 crore, with PBIT margin of 14.3% and accounted for 87% of total.

For the quarter, sales from the Construction Equipment Segment stood at Rs 265.95 crore, up by 44% YoY and accounted for 16% of sales. PBIT from the same was up by 126% to Rs 9.33 crore, with PBIT margin of 3.5% and accounted for 4% of total.

For the quarter, sales from the Railways Equipment Segment stood at Rs 96.56 crore, up by 34% YoY and accounted for 6% of sales. PBIT margin stood at 19.9% and PBIT from the same stood at Rs 19.25 crore up by 105% YoY.

Speaking on the results, Chairman and managing Director Mr. Nikhil Nanda said,

"Escorts today is driving technology led growth across businesses and endeavour to engineer unique engineering solutions for mechanized agriculture and strengthened infrastructure. We are continuously investing in new technologies, product mix and expanded distribution network for significant domestic growth and global reach. With recent technology collaborations and strategic JVs with global leaders like Kubota, Tadano and others, we aim to manufacture innovative products for emerging economies and offer unique solutions for domestic mechanized farming, smart construction and safe modern railways."

Other updates

Domestic Tractor volumes up by 34% YoY at 24720 units. Exports were up by 99% to 1023 units.

Construction Equipment volumes up by 30% at 1413 units

Strong order book of Rs 450 crore in Railway segment.

Escorts Ltd & Kubota Corporation eyes at strong domestic and exports market share by entering into a Global Joint Venture for technology collaboration and joint manufacturing of high - end, value – oriented utility tractor range. The JV to establish new common manufacturing with initial capacity of 50000. These tractors will be sold by both players respectively through their Decarate channel network in domestic market. As part of collaboration, Kubota to export Escorts tractors through Kubota global distribution network in specific markets as mutually agreed. Escorts and Kubota continue to develop their distribution channel in India independently, both companies to share their technology platforms for mutual growth along with some Greenfield opportunities in future. Both companies to jointly develop new products to cater to India and Overseas market.

Performance for the 9 months ended Dec 18

Net sales for the 9 months ended Dec 18 stood at Rs 4564.70 crore, up by 28%. OPM was higher by 110 bps to 11.9% thus resulting in OP growth of 42% to Rs 543.51 crore. Other income was up by 72% to Rs 63.51 crore. Interest costs was lower by 51% to Rs 11.01 crore, while depreciation was higher by 18% to Rs 63.56 crore, thus resulting in a 55% rise in PBT to Rs 532.45 crore. There is an EO expense of Rs 6.76 crore largely due to VRS expenditure as compared to EO income of Rs 10.91 crore from sale of crane business to JV on a slump sale basis for 9 months ended Dec 18. Profit at PBT after EO thus stood at Rs 543.36 crore, up by 61% YoY. After providing total tax of Rs 181.04 crore, PAT for 9 months ended Dec 18 stood at Rs 362.32crore, up by 56% on YoY basis.

For the 9 months, sales from the Agri Machinery Product Segment stood at Rs 3513.08 crore and accounted for 77% of sales. PBIT from the same was up by 35% to Rs 504.67 crore and accounted for 86% of total.

For the 9 months, sales from the Construction Equipment Segment stood at Rs 761.04 crore and accounted for 17% of sales. Profit at PBIT from the same stood at Rs 17.05 crore.

For the 9 months, sales from the Railways Equipment Segment stood at Rs 290.58 crore and accounted for 6% of sales. PBIT stood at Rs 62.69 crore up by 126% YoY.