Farm and construction equipment to railway products maker Escorts on Tuesday reported a consolidated net profit of ₹194 crore for the third quarter ended December, a decline of 32 per cent year-on-year (YoY) compared with ₹286 crore in corresponding period last year.
Consolidated total income also declined by three per cent at ₹2,025 crore (₹2,091 crore). The company said tractor sales were down 20 per cent at 25,325 units and construction equipment sales were down eight per cent at 1,151 units.
“The tractor industry has now been impacted for two consecutive quarters due to high base of last year, delayed harvest of kharif crops owing to late monsoon rains this year which affected the rural cash flows and the retail demand. Going forward, we do expect cash flows to improve with better kharif procurement and positive outlook with good rabi sowing,” Nikhil Nanda, Chairman and Managing Director, Escorts, said.
While high inflation remains a concern, the company hopes macro-economic factors will favour agriculture to boost rural demand, he said.
“We continue to invest in new product development and distribution spread to offer enhanced reach and customer experience across domestic and global markets. Multiple initiatives in agriculture and infrastructure development focus from government will be helpful in creating opportunities across our agriculture, construction and railway portfolio,” Nanda said.
Shares of Escorts closed at ₹1,843.30 apiece on the BSE on Tuesday, up 1.08 per cent from the previous close.