For
the quarter ending March 2023, consolidated net sales (including other operating income) of Escorts Kubota has increased 17.38% to Rs 2214.48 crore compared to quarter ended Mar 2022. Sales of Agri Machinery Products segment has gone up 14.65% to Rs 1,588.02 crore (accounting for 71.85% of total sales). Sales of Railway Equipments segment rose 37.27% to Rs 237.21 crore (accounting for 10.73% of total sales). Sales of Construction Equipment segment has gone up 20.60% to Rs 384.84 crore (accounting for 17.41% of total sales). Inter-segment sales rose Rs 1.43 crore to Rs 1.92 crore. Profit before interest, tax and other unallocable items (PBIT) has slumped 10.40% to Rs 219.33 crore. PBIT of Agri Machinery Products segment fell 26.40% to Rs 155.06 crore (accounting for 70.70% of total PBIT). PBIT of Railway Equipments segment rose 45.97% to Rs 33.12 crore (accounting for 15.10% of total PBIT). PBIT of Construction Equipment segment rose 172.53% to Rs 31.15 crore (accounting for 14.20% of total PBIT).
PBIT margin of Agri Machinery Products segment fell from 15.21% to 9.76%. PBIT margin of Railway Equipments segment rose from 13.13% to 13.96%. PBIT margin of Construction Equipment segment rose from 3.58% to 8.09%. Overall PBIT margin fell from 13.04% to 9.92%.
Operating profit margin has declined from 13.15% to 10.53%, leading to 6.04% decline in operating profit to Rs 233.16 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 60.76% to 66.49%. Purchase of finished goods cost fell from 7.15% to 5.19%. Employee cost increased from 6.94% to 7.21%. Other expenses fell from 11.08% to 10.61%. Other income rose 38% to Rs 75.68 crore. PBIDT rose 1.93% to Rs 308.84 crore. Provision for interest rose 1.97% to Rs 3.63 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 rose 1.93% to Rs 305.21 crore. Provision for depreciation rose 14.47% to Rs 38.37 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 grew 0.35% to Rs 266.84 crore. Provision for tax was expense of Rs 61.16 crore, compared to Rs 67.48 crore. Effective tax rate was 22.03% compared to 26.21%.
Minority interest increased 96.81% to Rs -0.03 crore. Net profit attributable to owners of the company increased 13.39% to Rs 216.49 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 .
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
recommended a dividend of Rs 7 (70%) per fully paid-up equity share of Rs 10
each for the financial year 2022-23.
In Q4 FY23, tractor volume increased
by 13.1% YoY to 24,765 units.
In FY23, tractor volume
increased by 9.6% to 1,03,290 units on YoY basis.
In Q4 FY23, construction
Volume increased 18.8% YoY to 1528 units. In FY23, construction Volume
increased 12.2% YoY to 4620 units.
In Q4 FY23, railway revenue
increased 37.3% YoY to Rs 237.2 crore. In FY23, railway revenue increased 32.3%
YoY to Rs 841.9 crore.
Domestic Tractor Market Share
in Q4 FY23 stood at 10.9% compared to 11.4% in Q4 FY22.
Domestic Tractor Market Share
in FY23 stood at 10.1% compared to 10.3% in FY22.
Order book for the railway
division, at end of March 2023, was more than Rs 1050 crore.
For
Q4 FY23, Capacity utilization of EAM (Escorts Agri Machinery) segment was
around 80% and capacity utilization of Construction Equipment segment was
around 60%.
In
FY23, Capacity utilization of EAM (Escorts Agri Machinery) segment was
around 90% and capacity utilization of Construction Equipment segment was
around 45%.