Construction Equipment volumes up by159 per cent at 606 units.
Escorts Limited hasreported net profit of ?185.2-crorein quarter ended June 30, 2021, up by 101 per cent, as against a profit of ?92.2-crore in corresponding quarterof the previous fiscal, and as against ?271.3-crore in sequential quarter.
Revenue fromoperations – at ?1,671.5-croresin quarter ended June 2021 – went up by 57.4 per cent as against ?1,061.6-cores in correspondingquarter and ?2,210.5-crorein sequential quarter. EBIDTA for the quarter ended June 30, 2021 at ?233.2-crore – up by 95 per cent – asagainst ?119.6-crorein quarter ending June 2020.
At consolidated level, revenue from operations was at ?1,701.8-crores in quarter ended June2021, up by 56.2 per cent, as against ?1,089.3-coresin corresponding quarter. Consolidated net profit recorded at ?178.5-crore in quarter ended June30, 2021, up by 92.8 per cent, as against a profit of ?92.6-crore in corresponding period lastfiscal.
Nikhil Nanda, Chairman and Managing Director, said, “Unlockinghas helped in building demand, easing transport and logistics, and improvedsupply chain to create a positive industry momentum and we certainly hope thatwith sustained government efforts, the construction equipment industry will beback on a growth path. While we are witnessing some encouraging developments inthe railway equipment space too, it may take some time to come out of theimpact of the current environment and regain the pre-Covid business levels.”
EscortsConstruction Equipment segment (ECE)
Constructionequipment sales volume at 606 machines for the quarter ended June 2021 was upby 159 per cent as against 234 machines in the corresponding period last fiscal.Segmental revenues was up by 168.3 per cent – to ?140.8 crore – in quarter ending June 2021as against ?52.5-crorein the corresponding period last fiscal.
EBIT margin forfirst quarter ended June 2021 were negative 2.3 per cent as against negative 32per cent in the corresponding period last fiscal. “Going forward, with improvedfunding availability and government thrust on infrastructure projects, demandis expected to recover to its full potential from October 2021 onwards post themonsoon season,” says Nanda.
RailwayEquipment Division (RED)
Segment revenue forthe first quarter went up by 117.5 per cent at ?119.4-crore in quarter ending June 2021 asagainst ?54.9-crorein the corresponding quarter. Sales from new products more than doubled and nowcontribute 63 per cent to total division sales as against 43 per cent last yearcorresponding quarter. EBIT margin for quarter ended June 2021 stood at 14.6 percent as against 2.6 per cent in the previous year.
“Indianrailways is still not running its full operations due to unprecedented COVID-19pandemic and have cut down their annual production rate, affecting fresh ordertendering and order inflow. Order book for the division, at end of June 2021,was more than ?300-crore and, going forward, with Governmentsafety measures and vaccination drive picking up at fast pace, we expect thattendering process will get back to pre-Covid level with in current fiscal,”says Nanda.
Thereviewed accounts for the quarter ended June 2021 have been approved by theBoard of Directors of Escorts Limited.
Dueto COVID-19 impact in previous year and partially this year, the figures do notrepresent normal quarter/operations and, to that extent, are not strictlycomparable and growth figures may be skewed.
“Unlocking hashelped in building demand, easing transport and logistics, and improved supplychain to create a positive industry momentum and we certainly hope that withsustained government efforts, the construction equipment industry will be backon a growth path.”