BackEscorts Limited reports sharp jump in Q2 profit
Revenue from operations at ₹ 1,639.7 crore in quarter ended September 2020 went up by 23.9%
PremiumEscorts Limited today reported a sharp jump in net profit for the September quarter, lifted by a strong jump in revenues. The tractor and agro-machinery maker reported net profit of ₹ 229.9 crore in quarter ended September 30, 2020, which is more than doubled against a profit of ₹ 104.6 crore in the corresponding period last year.
Operating margin expanded by 878 bps to 18.3%. During the quarter, tractor sales volumes were up by 23.8% at 24,441 units. Segmental revenue went up by 32.8% at ₹1,322.2 crore in quarter ended September 2020 as against ₹995.6 crore in corresponding period last fiscal.
"This quarter favourable product mix, operating leverage and various cost reduction initiatives, resulted in ever highest quarterly EBIT margin at 20.0%, up by 973 bps, as compared to 10.3% in corresponding period last fiscal," Escorts said in a statement.
Revenue from operations at ₹ 1,639.7 crore in quarter ended September 2020 went up by 23.9% as against ₹ 1,323.9 crore in the corresponding period last year.
Commenting on the results, chairman and managing Director Mr. Nikhil Nanda said, “The agri sector has been on an unprecedented boom. Maintaining highest safety measures and working closely with our partners to work around supply chain challenges, the demand for our tractors has so far outpaced our supplies. We think the momentum in agri sector will continue supported by positive macro-economic factors. We also hope that supply chain challenges would subside after a month or so. We have also started witnessing some positive development in the construction and railway equipment space now and hopefully we will see a full recovery soon. In all our business segments, we are optimistic for the coming quarters."
Escorts Limited shares were up 2% in late trade.
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