Es­corts Net De­clines 15% to 32 crore

The Economic Times - - Companies - OUR BUREAU

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.

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