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Escorts Ltd Q3 Standalone Revenue Up By 83 Four To 280 7 Cr

Escorts Ltd Q3 Standalone Revenue Up By 83 Four To 280 7 Cr

Escorts Limited today reported its highest standalone quarterly earnings ever of 280.7 crore for the quarter ended December 2020, up 83.4% from a profit of 153.1 crore for the corresponding period last year. Operating revenue increased 23.5% to £ 2,017.4 billion for the quarter ended December 2020, compared to £ 1,633.4 billion for the same period last year. Earnings per share at £ 21.28 increased 66.1% from £ 12.81 in the corresponding quarter and 20.1% from £ 17.72 the following quarter.

Revenue from operations for the nine months to December 2020 was £ 4,718.8 billion, up 7.7% from £ 4,380.3 billion in the corresponding period last fiscal year. Standalone net income for the nine months ended December 2020 of £ 602.7 billion increased 74.6% from a profit of £ 345.1 billion for the corresponding period last year.

At a consolidated level, revenue from operations increased 8.2% to £ 4,785.7 million in the nine months ended December 2020 compared to £ 4,424.4 million in the nine months ended December 2019. Consolidated net income of 606, £ 2 billion in the nine months to December 2020 increased 76.2% compared to a profit of £ 344.0 billion in the corresponding period last fiscal year.

Commenting on the results, Chairman and CEO Nikhil Nanda said: “Agricultural demand for tractors and farm mechanization continues to grow. We hope for continued momentum as we see a strengthening of the agricultural and rural economies. We have maintained an appropriate security standard throughout the company to ensure uninterrupted supply to our customers. The positive development in the construction machinery sector is also encouraging. We are optimistic that the construction and railroad equipment segments will see a better environment for business recovery. The government’s efforts to vaccinate against Covid will continue to build confidence in all sectors and provide further momentum to the economy. “

SEGMENT WISE PERFORMANCE

Agricultural machinery escort

The tractor volume increased by 25.7% in the quarter to December 2020 to 31,562 units compared to 25,109 units in the corresponding period of the last fiscal year. Segment revenue increased 28.0% to £ 1,652.7 billion for the quarter ended December 2020, compared to £ 1,291.5 billion for the same period last fiscal year. The operational leverage, the favorable product mix and the cost efficiency in this quarter led to an ever highest quarterly EBIT margin of 564 basis points at 20.1% compared to 14.5% in the corresponding period of the previous year.

In the nine months of the current financial year, the tractor volume rose by 12.5% ​​to 74,153 units compared to 65,910 units in the corresponding period of the last financial year. Segment revenue also rose 16.3% to £ 3,928.4 billion in the nine months to December 2020, compared to £ 3,379.2 billion in the same period last fiscal year. The EBIT margin for nine months of the fiscal year rose by 663 basis points to 18.7% compared to 12.1% in the corresponding period of the last fiscal year.

Escort construction machinery

The sales volume for construction machinery rose by 20.1% in the quarter to December 2020 to 1,254 machines compared to 1,044 machines in the corresponding period of the last financial year. Segment revenue increased 13.0% to £ 244.7 billion in the quarter ended December 2020, compared to £ 216.6 billion in the corresponding period last fiscal year. The EBIT margin of 7.5% rose by 270 basis points compared to 4.8% in the same period of the previous year.

In the nine months of the current financial year, the construction machinery volume was 2,309 units compared to 3,056 units in the corresponding period of the last financial year. Segment revenue for the nine months ended December 2020 was £ 454.1 billion compared to £ 629.7 billion in the same period last year. The EBIT margin for nine business months is now positive at 1.0% compared to 3.4% in the same period of the previous year.

Railway products division

Revenue for the third quarter was £ 117.4 billion for the quarter ended December 2020, compared to £ 124.4 billion for the corresponding quarter. During the quarter, we fulfilled 69.2% of all orders in the category of new products with more import content and lower margins than in the previous year when it was only 44.2%. The EBIT margin in December 2020 was 12.7%.

Segment revenue for the nine month period of current Fiscal Rail Products was £ 332.5 billion compared to £ 369.3 billion for the corresponding period last year. The EBIT margin for nine months of the financial year was 14.7%. Indian Railways is still not fully operational due to the unprecedented COVID-19 pandemic and has revised its production schedule, which is affecting new orders and incoming orders. The order backlog for the division was more than £ 330 billion at the end of December 2020 and should be exported over the next 6 to 8 months. We recorded an increase in incoming orders in December 2020 and assume that the tendering process will return to its pre-Covid level by the end of the fourth quarter of the current financial year.

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