NEW DELHI: Led by strong demand for tractors and construction equipments, Escorts Ltd on Thursday posted a whopping 89.2 per cent increase in its Q4 FY18 net profit to Rs 112.5 crore as against Rs 59.5 crore profit reported in the corresponding quarter last year.The company’s revenue from operations stood at Rs 1,436.10 crore for the reported quarter as compared with Rs1,043.90 crore in the year-ago period.
Operating profit during the quarter more than doubled to Rs 173.7 crore compared to Rs74.3 crore and margin improved 480 basis points to 12.1 per cent year-on-year.
For the full financial year, Escorts reported a 114.5 per cent increase in its standalone profit at 344.7 crore as against a profit of 160.4 crore in the previous fiscal. During the fourth quarter, the company sold 23,568 tractors, up 57.4 per cent from the same period of previous year, while for the full fiscal it sold 80,417 tractors, up 26.1 per cent.
The company’s construction equipment sales in Q4 were up by 48.6 per cent to 1,541 units as against the corresponding period. Company’s Chairman Rajan Nanda said, “Government’s vision for doubling farmer’s income by 2022 & agriculture and adequate infrastructure including railway & metro network policies will further accelerate economic growth and opportunities. Escorts is well prepared and will actively contribute in national development and community welfare.”
The company in its presentation said that domestic tractor industry is expected to grow by 15-18 per cent in Q1FY19.