Aided by robust tractor sales, engineering and farm equipments maker Escorts Ltd on Tuesday reported a net profit of ₹121 crore in the fourth quarter ended March 31, up more than 7 per cent compared with ₹112 crore in the corresponding period the previous year.
Revenue from operations also grew more than 13 per cent to ₹1,631 crore during the January-March quarter as against ₹1,436 crore in the year-ago period.
The company has recommended a dividend of ₹2.50 (25 per cent) per fully paid-up equity share of ₹10 each for the financial year 2018-19, on all equity shares other than those held by Escorts Benefit and Welfare Trust.
During the quarter, the company sold 25,136 units of tractors, up around 7 per cent from the same period a year ago.
For the whole year, the company sold 96,412 units, up 20 per cent compared with 2017-18.
The company reported a net profit of ₹485 crore for 2018-19, up 41 per cent compared with ₹345 crore in 2017-18.
Revenue from operations stood at ₹6,196 crore in 2018-19 as against ₹5,016 crore in 2017-18.
New business solutions
“Escorts is committed to providing state-of-the-art technology and unique engineering solutions for mechanised and innovative agriculture solutions, well supported infrastructure and safe rail transport. We will continue to bring in new technologies with a blend of frugal engineering and global technology collaborations for domestic and global markets, enabled by strong product mix and expanded distribution network,” Nikhil Nanda, Chairman, Escorts Ltd said.
He said the company’s emerging businesses, such as crop solutions, rental services, and aggregation of tractors for wider usage will provide a strong impetus and access to modern agriculture practices.
Meanwhile, the company has announced the appointment of Sunil Kant Munjal as independent director for a period of five years on the board of Escorts Ltd, subject to the approval of the shareholders at the forthcoming annual general meeting, it said.
Shares of Escorts closed at ₹645 a piece on the BSE on Tuesday, down 2.96 per cent from the previous close.
Escorts has recommended a dividend of ₹2.50 per fully paid-up equity share of ₹10 each for the financial year 2018-19, on all equity shares other than those held by Escorts Benefit and Welfare Trust