New Delhi, May 2017 – Escorts Limited reported a profit of Rs 160.4 crore in year ended March 2017 up by 91.6 per cent as against a profit of Rs 83.2 crore in the previous fiscal. Turnover up by 21.2 per cent to Rs 4,167.6 crore as against Rs 3,438.7 crore in the previous fiscal. Material cost was down by 90 bps at 67.0 per cent as against 67.9 per cent in the previous fiscal.

Tractor sales at 63,786 tractors up by 24 per cent as against 51,455 tractors in the previous year. EBIT margins up by 212 bps at 10.3 per cent as against 8.2 per cent in the previous fiscal. Fourth quarter ended March 2017 tractor volumes at 14,978 up by 26.7 per cent and EBIT margin at 10.1 per cent up by 62 bps as against the previous year same period.

Construction equipment sales at 3,315 units up by 29.8 per cent as against 2,555 units in the previous year. Positive swing of 291 bps in EBIT margins as against previous fiscal. Fourth quarter ended March 2017 volumes at 1,037 up by 40.7 per cent and EBIT margin at 2.1 per cent up by 543 bps as against the previous year same period.

Railway division sales up by 6.5 per cent at Rs 242.5 crore as against Rs 227.8 crore in the previous year. EBIT margins up by 280 bps at 12.7 per cent as against 9.9 per cent in the previous fiscal. Fourth quarter ended March 2017 sales at Rs 66.6 crore up by 17.2 per cent and EBIT margin at 10.8 per cent up by 554 bps as against the previous year same period. The current order book is around Rs 155 crore and will be executed in the next 6-7 months.

EBIDTA from continuing operations up by 83.2 per cent at Rs 323.7 crore as against Rs 176.7 crore in the previous fiscal, EBIDTA margin at 7.8 per cent up by 263 bps as against previous fiscal. Net profit from continuing operations more than doubled at Rs 201.1 crore as against Rs 100.7 crore in the previous fiscal. EPS reported at Rs 13.43 as against Rs 6.97 in the previous year.

Volume growth, increase in share of market and cost reduction initiatives contributed to increase in margins. Increase in commodity prices has partially impacted the performance.

Speaking on the results, Chairman Mr. Rajan Nanda said, "Renewed focus on farm mechanisation, agricultural infrastructure and highways reflects in our growth across businesses. Government's vision for smart cities, doubling farmer's income by 2022 and rural elevation policies will further accelerate economic growth and opportunities. Escorts today is well prepared for it."

According to Mr. Nikhil Nanda, Managing Director, Escorts Ltd, "We are in a continuous process to compress cost, better our margins and strengthen customer connect. Our expanded product portfolio and technology upgrades have resulted in improved numbers both in existing and newer geographies. Our major thrust today is to integrate global best practices, imbibe and innovate futuristic techniques and product standards which will not only foster agriculture elevation but will also provide smart and safe infrastructure."