Escorts Kubota Ltd. releases financial performance for the first quarter of the financial year 2022-2023

Escorts Kubota Limited reported net profit of Rs. 147.5 crore in quarter ended June 30, 2022, as against a profit of Rs. 185.2 crore in corresponding quarter of the previous fiscal.

More details:

  • Revenue from operations was at ₹ 2,014.9 crores in the quarter ended June 2022 as against ₹ 1,677.0 cores in corresponding quarter of the previous fiscal. EBIDTA for the quarter ended June 30, 2022 came at ₹ 201.6 crore as against ₹ 238.8 crore in the corresponding quarter of the previous fiscal.
  • Although the company took price increase across its product portfolio along with cost reduction efforts, steep inflation in commodity prices coupled with adverse product mix impact due to industry shift towards lower horsepower segment adversely impacted operating profit for the quarter ended June 2022.
  • During the quarter profit before tax was also impacted due to lower other income due to temporary mark-to-market losses on treasury Investments.

At Consolidated Level:

  • Revenue from operations was at ₹ 2,032.1 crore in the quarter ended June 2022, up by 19.0% as against ₹ 1,707.3 crore in the corresponding quarter of the previous fiscal. Consolidated net profit recorded at ₹ 140.6 crore in quarter ended June 30, 2022 as against a profit of ₹ 178.5. crore in the corresponding quarter of the previous fiscal.
  • EPS for quarter ended June 2022 was reported at ₹ 13.01 as against ₹ 18.13 in corresponding quarter and ₹ 18.56 in sequential quarter.

Speaking on the results, Mr. Nikhil Nanda, Chairman and Managing Director, said, “We are excited to be Escorts Kubota Limited (EKL) now. During the first quarter of the current fiscal industry the Agri sector has witnessed a positive trend, after 3 quarters of degrowth. With onset of monsoon, and likely record kharif crop production, rural liquidity and farmer sentiments are expected to gradually improve. In our construction business, we have outperformed the industry in our served markets and expect growth momentum to continue with the Government’s thrust on infrastructure development. We are witnessing good order booking in our Railway Business and expect a strong fiscal going ahead. With recent Government actions, Inflation may stabilise in near term and operating leverage may further possibly help in partially diluting the impact on margins in coming quarters.”

Agri Machinery Products:

  • Tractor sales volume at 26,797 tractors for the quarter ended June 2022 went up by 3.3% as against 25,935 tractors in the corresponding quarter of the previous fiscal. Segmental revenues were up by 12.6% to ₹ 1,595.8 crore in the quarter ending June 2022 as against ₹ 1,416.7 crore in the corresponding quarter of the previous fiscal. 
  • EBIT margin for first quarter ended June 2022 came at 10.6% as against 15.5% in the corresponding period last fiscal.

Construction Equipment:

  • Construction equipment sales volume at 966 machines for the quarter ended June 2022 up by 59% as against 606 machines in corresponding quarter of the previous fiscal.
  • Segmental revenues were up by 74.5% to ₹ 246.1 crore in the quarter ending June 2022 as against ₹ 141.1 crore in the corresponding quarter of the previous fiscal. EBIT margin for first quarter ended June 2022 at 1.0% as against negative 2.3% in corresponding quarter of the previous fiscal.

Railway Equipment:

  • Segment revenue for the first quarter went up by 45.2 % at ₹ 173.4 crore in the quarter ending June 2022 as against ₹ 119.4 crore in the corresponding quarter of the previous fiscal.
  • EBIT margin for quarter ended June 2022 stood at 13.6 % as against 14.6 % in the previous year. Order book for the division, at the end of June 2022, was more than ₹ 850 crore.

Source: Escorts Kubota Limited -Press Release