Published - 09 May 2025
by Tractor Junction
Faridabad, May 8, 2025: Escorts Kubota Limited (EKL) has reported a 15.7% rise in standalone net profit for FY25, reaching Rs 1,250.9 crore. The company shared this update in a press release issued yesterday.
Revenue from continuing operations increased 4.7% to Rs 10,187.0 crore. Last year, it was Rs 9,730.7 crore. The rise in profit and revenue shows steady business performance in a challenging market.
For the year ended March 2025, tractor volumes came in at 1,15,554 units. This marks a 1.0% increase from 1,14,396 units in the previous year. Segment revenue rose to Rs. 8,447.2 crore, up from Rs. 7,897.4 crore last year.
However, the EBIT margin for the full year came at 10.7%, slightly lower than 11.2% in FY24.
Construction equipment volumes dropped to 6,484 units in FY25, down from 7,141 units in the previous year.
EKL’s railway equipment business is now reported as discontinued operations. The board approved its sale as a going concern in October 2024. Despite that, revenue from the segment stood at Rs. 912.8 crore, down from Rs. 950.4 crore last year.
Still, profit before tax from this segment rose 5.6% to Rs. 188.7 crore.
Profit before tax (PBT), excluding exceptional items, grew 8.3% to Rs. 1,366.6 crore from continuing operations.
Earnings per share (EPS) increased 19.0% to Rs. 113.77 from Rs. 95.59 in FY24.
In the quarter ending March 2025, standalone revenue from continuing operations grew 6.1% year-over-year to Rs. 2,430.3 crore. But it declined from Rs. 2,935.4 crore in the previous quarter.
Tractor volumes for the quarter rose 7.6% year-over-year to 26,633 units, compared to 24,747 units in the same quarter last year. However, volumes were lower than 32,556 units in the previous quarter.
Segment revenue for tractors in Q4 stood at Rs. 1,974.8 crore. This is up from Rs. 1,776.7 crore year-over-year, but lower than Rs. 2,416.6 crore sequentially.
The EBIT margin for the tractor segment came at 11.4%, slightly lower than 11.5% in the same quarter last year. Still, it improved from 10.4% in the previous quarter.
Construction equipment volumes in Q4 dropped to 1,719 units, but the segment maintained a 9.1% EBIT margin.
On a consolidated basis, EKL reported Rs. 10,243.9 crore revenue from continuing operations in FY25, reflecting a 4.5% rise.
Consolidated net profit, including discontinued operations, rose 17.5% to Rs. 1,265.0 crore.
The board recommended a final dividend of Rs. 18.0 per share. Combined with the interim dividend of Rs. 10.0 already paid, the total dividend for FY25 amounts to Rs. 28.0 per share. This marks a 56% increase over the previous year.
Finally, the FY25 results also reflect the approved merger of Escorts Kubota India Pvt Ltd and Kubota Agricultural Machinery India Pvt Ltd with EKL. The National Company Law Tribunal, Chandigarh Bench, had approved the merger earlier.
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