Escorts Net Declines 15% to 32 crore
Tractor maker Escorts has reported a 15% decline in quarterly net profit at .` 31.8 crore. For the three months to end-March, the company’s net sales stood at .` 977 crore compared with .` 997crore a year ago, the Delhi-based company said on Wednesday. For the 18 months to March 31, 2014, the company’s net profit stood at .` 245 crore, an 81% increase from the corresponding period to end-March 2013. During this period, the company sold 1,00,833 tractors, up 8.9% from the 92,543 units sold in the 18 months ended March 2013. The company has extended its financial year to align it with the AprilMarch fiscal calendar. Accordingly, its fiscal year was of 18 months and the January-March 2014 quarter its sixth quarter. “The 18-month fiscal has been a mixed bag of strong growth, followed by a slowdown in the last quarter as a result of crop damage due to unseasonal rains, elections and a slow economy,” Escorts’ chairman Rajan Nanda said. Managing director Nikhil Nanda, said Escorts will maintain its operational focus through internal restructuring, reduction of headcount and outsourcing. “Tight cost management and enrichment of the product mix will remain our goal to achieve higher profit margins. We are working with global design houses to introduce the next generation tractors. Our plan to manufacture the Ferrari Tractor in India and for global markets is at an advanced stage,” he said. For the quarter under review, the company’s share of the domestic tractor market climbed to 11.1% compared with 10.4% in the previous quarter. Escorts’ total tractor market share (domestic and exports) went up to 10% compared with 9.6% in the previous quarter. On Wednesday, Escorts’ shares closed 1.25% lower on BSE at .` 126.6.