Escorts Ltd - Performance of Business Divisions

Escorts Limited today reported, Standalone profit of Rs. 485.5 crore in year ended March 31, 2020 as against a profit of Rs. 484.9 crore in the previous fiscal and consolidated profit of Rs. 471.7 crore in year ended March 31, 2020 as against a profit of Rs. 477.9 crore in the previous fiscal. Profit for quarter ended March 2020 was up by 15.7 percent at Rs. 140.4 crore as against Rs. 121.4 crore in the corresponding quarter last year.

Escorts Agri Machinery

Tractor volumes were at 86,018 units in fiscal 2019-20 as against 96,412 units in previous fiscal. Segmental revenue came at Rs. 4,437.6 crore in fiscal 2019-20 as against Rs. 4,744.0 crore in previous fiscal. EBIT margin was at 13.0% in fiscal 2019-20 as compared to 14.0% in previous fiscal.

Tractor sales were at 20,108 units in quarter ended March 2020 as against 25,136 units in the corresponding period last fiscal. Segmental revenue came at Rs. 1,058.4 crore in quarter ended March 2020 as against Rs. 1,230.9 crore in corresponding period last fiscal. EBIT margins for quarter ended March 2020 was at 15.8%, up by 270 bps, as compared to 13.1% in the corresponding period, supported with softening commodity prices and operational efficiencies.

Escorts Construction Equipment

Construction equipment sales were at 4,042 units in fiscal 2019-20 as against 5,544 units in the previous fiscal. Segmental revenue came at Rs. 839.8 crore in fiscal 2019-20 as against Rs. 1,054.1 crore in previous fiscal. EBIT margin was at 3.6%, flat as compared to previous fiscal.

Construction equipment sales were at 986 units in quarter ended March 2020 as against 1,455 units in the corresponding period last fiscal. Segmental revenue came at Rs. 210.0 crore in quarter ended March 2020 as against Rs. 293.0 crore in corresponding period last fiscal. EBIT margins for quarter ended March 2020 was at 4.3% as compared to 7.1% in the corresponding period last fiscal.

Railway Equipment Division

Revenue was up by 21.1% at Rs. 477.2 crore in fiscal 2019-20 as against Rs. 394.1 crore in previous fiscal. Sales from new product grew by 74.3% in fiscal 2019-20 and now EBIT margin stands at 18.0 % in fiscal 2019-20 as against 19.9% in the previous fiscal.

Revenue for the quarter ended March 2020 was up by 4.3% at Rs. 108.0 crore as against Rs. 103.5 crore in the corresponding period last fiscal. EBIT margin stands at 14.0 % in quarter ended March 2020 as compared to 15.1% in the corresponding period last fiscal.

Order book for the division stood at more than Rs. 500 crore as at end of March 2020, that will get executed in the next 12~15 months.

Shares of ESCORTS LTD. was last trading in BSE at Rs.794.3 as compared to the previous close of Rs. 812.2. The total number of shares traded during the day was 259598 in over 8098 trades.

The stock hit an intraday high of Rs. 807.45 and intraday low of 779. The net turnover during the day was Rs. 206253781.

Source : Equity Bulls

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