Escorts Profit Jumps 11.2 Per Cent In Q3

Farm and construction equipment manufacturer Escorts Limited on Thursday (February 9) reported a profit of Rs 22.7 crore in the quarter ending December 31, 2016, up by 11.2 per cent as against a profit of Rs 20.4 crore in the corresponding quarter previous fiscal. It also reported a jump of 22.6 per cent in turnover at Rs 1,093 crore for the third quarter.

"The profit reported is after one time loss from discontinued operations in respect of its Auto Products business of Rs 30.8 cr," Escorts said in a statement.

Rajan Nanda, chairman of Escorts Ltd, said, "We are on a growth trajectory. Escorts today is prepared for a continued momentum and growth across sectors."

"Agricultural and highways focus in the union budget will also have a positive impact on farm income, rural economy and infrastructure development fostering further investments and opportunities," Nanda said on the impact of Union Budget on the industry.

Escorts net profit for the nine months ending December 2016 was up by 54.4 per cent at Rs 101 crore as against Rs 65.4 crore in the corresponding period last year. Turnover for first nine months of fiscal 2017 stood at Rs 3,123.7 crore, up by 18.7 per cent as against Rs 2,632.7 crore in the nine months ended December 2015.

The Faridabad-based company added that its cost was down by 1.5 per cent at 68.6 per cent as against 70.2 per cent in the corresponding nine-month period.

Escorts Managing Director Nikhil Nanda said: "Focus on investments in expanding our product portfolio, appointing new dealers for an expanded coverage and wider service reach have resulted in better customer connect and demand."

The company sold 16,963 units of tractors during the third quarter of financial year 2016-17 financial year, up 27.4 per cent when compared with the corresponding quarter last year. Escort competes with Mahindra & Mahindra, TAFE, Sonalika Tractor in the farm equipment market.

Sales of Escorts' construction equipment division went up by 16.8 per cent at 815 units as against 698 units in the corresponding quarter.

Its railway equipment division recorded a 2.6 per cent increase in revenue for the third quarter ended December 31 at Rs 58 crore as against Rs 56.5 crore in the corresponding quarter.