Tractor manufacturing company Escorts India reported a decline of 27.6 per cent in its profit after tax during the quarter ended June 30, 2019. The consolidated net profit slipped to Rs 87.66 crore during the quarter under review, in comparison to Rs 121.07 crore during the corresponding quarter last fiscal.
Escorts India's revenue from operations slipped 5.8 per cent to Rs 1,440.5 crore during the first quarter of the financial year 2019-20, in comparison to Rs 1,529.01 crore during the corresponding quarter during the last fiscal.
In standalone terms, the net profit of Escorts fell 27.5 per cent to Rs 87.5 crore during Q1 FY20, as against Rs 120.7 crore during the same period last fiscal. Standalone revenue from operations for the quarter under review was booked at Rs 1,422.97 crore, 5.8 per cent lower than Rs 1,511.29 crore reported during the corresponding quarter.
EBIDTA for the quarter ended June 30, 2019, was at Rs 142.4 crore against Rs 185.5 crore in the quarter ending June 2018. EPS reported at Rs 7.32 as against Rs 10.10 in the corresponding quarter.
Escorts India sold 21,051 tractors during the June quarter of the ongoing financial year, the company said in its regulatory filings, down 14.1 per cent in comparison to the tractor sales the June quarter of the last fiscal. The company sold 1,067 construction machines during the quarter under review, the filing showed.
"Escorts has been treading aligned to expectations across Agri Machinery, Construction and Railway businesses. Tractor industry has been slowing down since the last few months, thus our endeavour is to keep revenue and profitability intact with strategic initiatives and elimination of waste and inefficiencies. We will continue to invest in critical new products and technologies, efficient and diversified distribution which will enable us to increase our market share across domestic & export markets," said Nikhil Nanda, Chairman and Managing Director, Escorts India.