Escorts Ltd. reports strong performance
Company’s Q1 profit up 92.7 per cent YoY to `120.7-cr.

-  Construction Equipment volumes up by 51.8 per cent at 1,345 units.
-  Tractor volumes up by 39.5 per cent at 24,494 units.
-  EBIDTA up by 90.2 per cent at `185.5-crore.
-  Profit up by 92.7 per cent at `120.7-crore.

Escorts Limited has reported profit of `120.7-crore in quarter ended June 30, 2018, up by 92.7 per cent as against a profit of `62.6-crore in corresponding quarter of the previous fiscal and up by 7.2 per cent as against `112.5-crore in sequential quarter. Revenue from operations is up by 29.9 per cent correspondingly to `1,511.3-cr., and up by 5.2 per cent sequentially.
EBIDTA for the quarter correspondingly is up by 90.2 per cent at `185.5-crore as against `97.5-crore in quarter ending June 2017 and sequentially up by 6.8 per cent against `173.8-crore in quarter ending March 2017. EPS reported at `10.10 as against `5.24 in corresponding quarter.
Speaking on the results, Nikhil Nanda, Managing Director of the company said, “Escorts has seen a positive momentum in the first quarter of this fiscal with a strong performance in June reflecting both farm optimism as well as warm reception for Escorts products with innovative technologies. We are in a continuous process of developing solutions that are intelligent, environmentally safer and providing better value to our customers. Apart from our focus on advanced technologies, such as electric and autonomous tractors, we are partnering global IT, engineering and technology driven firms to develop products that will fundamentally change the way in which farming is done. “Similarly, our focus on urban smart infrastructure and safe railway transport segments is tapping into technology driven sectors. Our strong focus on cost compression, better margins and strong customer connect driven with innovation, we have embarked on a game changing pathway. With a strong focus on innovation and quality across Agri Machinery, Construction and Railways, the company will continue to strengthen its product offering and leverage the improved market conditions.”

Escorts Construction Equipment (ECE) Performance
Construction equipment sales in the quarter ended June 2018 was correspondingly up by 51.8 per cent to 1,345 units against 886 units in quarter ended June 2017. Segmental revenues increased correspondingly by 49.5 per cent at `246.0-crore in quarter ending June 2018 as against `164.5-crore in quarter ended June 2017. EBIT margin is correspondingly up by 451 bps, and stands at 2.4 per cent for quarter ended June 2018.

Railway Products Division (RED)
Railway division sales in the quarter ended June 2018 is correspondingly up by 35.0 per cent at `88.1-crore as against `65.2-crore in quarter ended June 2017 and, sequentially, up by 15.9 per cent against `76.02-crore in quarter ended March 2018. “This quarter, we have better product mix, higher spare sales that resulted in EBIT margin correspondingly moving up by 1543 bps and, sequentially, up by 947 bps, it now stands at 25.3 per cent for quarter ended June 2018,” informs Nanda. “The current order book as of 30th June 2018 is more than `300-crore and will be executed in the next 11-12 months.”
The reviewed accounts of the quarter ending June 2018 have been approved by the Board of Escorts Limited.

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