Escorts Kubota Q4 results: Profit up 13.1%, Rs 7 dividend announced; here's what management says

Escorts Kubota on Wednesday reported a 13.9 per cent year-on-year (YoY) rise in consolidated net profit at Rs 216.50 crore compared with a profit of Rs 190 crore in the corresponding quarter last year. On a sequential basis, profit grew 19.7 per cent over Rs 180.80 crore in the December quarter.

Consolidated revenue from operations for the quarter Rs 2,214.50 crore, up 17.4 per cent over Rs 1,886.60 crore in the same quarter of the previous year. Ebitda for the quarter ended March 2023, came at Rs 233.20 crore against Rs 248.20 crore in corresponding quarter last year.

Tractor volumes stood at 24,765 units, up 13.1 per cent YoY, with the segment revenue rising 13.6 per cent to Rs 1,557.50 crore. EBIT margin for the segment came in at 9.9 per cent against 15.4 per cent YoY.

Construction equipment sales volumes stood at 1,528 machines, up 18.8 per cent YoY. The segment revenues was up 20.5 per cent at Rs 384.80 crore while EBIT margin for the same stood at 8.1 per cent (3.6 per cent YoY), led by higher volume, better product mix and softening in commodity prices.

Meanwhile, the railways product segment reported revenues at Rs 237.20 crore, up 37.3 per cent. EBIT margin was up at 14 per cent (13.l  per cent YoY).

The company recommended a final dividend of Rs 7 for FY23.

Chairman and Managing Director Nikhil Nanda said, "Our efforts are aligned with our mid term business plan for achieving the targeted growth in coming years. In agribusiness, while the retail sales were impacted due to unseasonal rainfall and crop damage in certain regions, however, with better crop prices, improved finance availability and good water reservoir levels, we expect demand momentum to continue across geographies in the coming quarters."

Nanda said his company witnessed growth across the construction equipment portfolio towards the second half of this fiscal year across material handling, earth moving as well as road segment.

The current market sentiments are positive, he said adding that the demand is expected to remain buoyant due to the continuous focus of the government towards infrastructure projects.

"Railway business has also been consistently growing and the focus on rail network and connectivity will further provide impetus to the segment. Our investments in expanding coverage, building capacity, and producing innovative product lines will continue for enhanced customer reach and product experience."

Deputy Managing Director Seiji Fukuoka said: "Our efforts across domestic and export geographies are well mapped to leverage on opportunities across our core business verticals, and we are hopeful that with our strategic initiatives we will be able to achieve desired growth. Quality and performance will be our topmost priority and we will continue to focus on innovation and enhancing customer experience."

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