Escorts has doubled its net profit for the third quarter ending June 30 to Rs 27 crore as compared to the same period last year. Improving profits have been attributed to higher sales, better margins and cost compression measures undertaken by the company.
Net sales in the period were up 18 per cent to Rs 860 crore. The company follows the October-September fiscal year.
Chairman and Managing Director Rajan Nanda said, “The performance this quarter shows the success of strategies that the company has adopted over the last two quarters, including launch of executive tractors, deepening of the sales and distribution network, and brand-building. It would be important to keep in mind that the company’s performance has come despite the market conditions, which have toughened further with the poor performance of the monsoon so far.”
Tractor sales in the April-June period rose 13 per cent at 16,083 units. The EBITDA stood at Rs 60 crore (margins at 6.5 per cent), as against Rs 31.4 crore (margins at 4.3 per cent) in the corresponding period last year.
The company claimed to have outperformed the market during the quarter, growing at 11.66 per cent as against the industry growth of 2.28 per cent during the same period.
Escorts shares were up 1.02 per cent at Rs 59.15 on the BSE on Monday.