Escorts Kubota : Q1 Standalone Profit at ₹ 147.5 crore

• Tractor volumes up by 3.3% at 26,797 units
  • Domestic tractor volume up by 0.4% at 24,608 units
  • Export tractor volumes up by 52.5% at 2,189 units, highest ever in any quarter
• Construction Equipment volumes up by 59.4 % at 966 units
• Standalone EBIDTA at ₹ 201.6 crore
• Standalone Net Profit at ₹ 147.5 crore

New Delhi, August 1, 2022: Escorts Kubota Limited today reported net profit of ₹ 147.5 crore in quarter ended June 30, 2022, as against a profit of ₹ 185.2 crore in corresponding quarter of the previous fiscal.

Revenue from operations was at ₹ 2,014.9 crores in 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 corresponding quarter of the previous fiscal. Although the company took price increase across its product portfolio along with cost reduction efforts, but 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 quarter ended June 2022, up by 19.0% as against ₹ 1,707.3 crore in 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 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 current fiscal industry in Agri sector has witnessed positive trend, after 3 quarter 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 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."

SEGMENT WISE PERFORMANCE

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 corresponding quarter of the previous fiscal. Segmental revenues was up by 12.6% to ₹ 1,595.8 crore in quarter ending June 2022 as against ₹ 1,416.7 crore in 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 was up by 74.5% to ₹ 246.1 crore in quarter ending June 2022 as against ₹ 141.1 crore in 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 quarter ending June 2022 as against ₹ 119.4 crore in 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 end of June 2022, was more than ₹ 850 crore.

The reviewed accounts for the quarter ended June 2022 have been approved by the Board of Directors of Escorts Kubota Limited.

For further information, kindly contact:

Bharat Madan

President Finance, Group Chief Financial Officer & Corporate Head
Email ID: [e-mail]