Escorts Q4 FY 2016-17 reports profit of Rs 59 crore

Tractor maker Escorts has reported net profit of Rs 59.1 crore during Q4 of FY 2016-17 as against Rs 18.1 crore in the corresponding period of the previous year. 

Sales volume during FY 2016-17 stood at 63,786 tractors as against 51,455 in the previous year, a growth of 24 percent. The company reported revenue of Rs 4,167.6 crore in FY 2016-17, an increase of 21.2 percent over Rs 3,438.7 crore in the previous fiscal. EBIDTA from operations was 83.2 percent at Rs 323.7 crore during FY '17 as against Rs 176.7 crore a year earlier. Net profit for the financial year doubled to Rs 201.1 crore over the previous fiscal. 

Increase in market share, cost reduction initiatives and volume growth contributed to improved margins. Increase in commodity prices partially impacted the performance. Speaking on the results, Rajan Nanda, Chairman, Escorts, said, “Renewed focus on farm mechanisation, agricultural infrastructure and highways reflects in our growth across businesses. Government’s vision for smart cities, doubling farmer’s income by 2022 & rural elevation policies will further accelerate economic growth and opportunities.”

Commenting on the results Nikhil Nanda, MD said “We are in a continuous process to compress cost, better our margins & strengthen customer connect. Our expanded product portfolio and technology upgrades have resulted in improved numbers both in existing and newer geographies. Our major thrust today is to integrate global best practices, imbibe and innovate futuristic techniques and product standards which will not only foster agriculture elevation but will also provide smart and safe infrastructure.” 

The company launched 13 new tractors, powered by CRDI engines last year, foraying into newer and extreme horse power range of 12hp and 110hp, and selling its OEM & export business of Auto Product division to Badve Engineering as part of its strategic reorientation for focusing on its core verticals.