Escorts Tractor's Q1FY19 profit rises 91% yoy to 120 cr

Escorts Tractor's Q1FY19  profit rises 91% yoy to 120 cr

Escorts Ltd Q1FY19

Standalone Results Q1FY19: (in Rs cr)

  Q1FY19 YoY (%)
Revenue 1,511.29 32.3
EBITDA 185.54 90.2
EBITDA Margin (%) 12.3 374
Net Profit (adjusted) 119.56 90.8

***EBITDA margin change is bps

Escorts Limited reported in-line numbers for Q1FY19. The company reported a standalone revenue of Rs1,511cr, up 32% yoy (5% qoq), exactly meeting the consensus estimate. EBITDA was up 90% yoy (7% qoq) at Rs186cr, while EBITDA margin expanded 374bps yoy (18bps qoq) to 12.3%. EBITDA and EBITDA margin was higher than the consensus estimate of Rs167cr and 11.1%, respectively. 

Other Highlights

  • Within segments, revenue for the largest segment (agri-machinery products) grew 25% yoy (8% qoq), while the second-largest segment (construction equipment), grew 49% yoy. Railway business revenue was up 35% yoy. In short, top-line performance for Q1FY19 was powered by all three segments.
  • Operating performance was led by strict control on costs and lower input expenses (as % of sales). Within segments, the agri-machinery products segment saw 64% yoy (1% qoq) growth in EBIT. The segment has been performing very strongly owing to robust rural cues and tractor sales. The railway segment has seen a steady improvement in operating performance over the past four quarters. EBIT for the railway segment tripled (yoy) in Q1FY19 to Rs22cr.

Highlights from the Q1FY19 presentation

  • The tractor sector is expected to grow (in volume terms) by 12-15% in FY19.
  • The construction equipment sector is expected to grow (in volume terms) by 16-18% in FY19.
  • Escorts sold 24,494 tractors in Q1FY19, a growth of 39.5% yoy (4% qoq). It sold 1,345 construction equipment in Q1FY19, a growth of 52% yoy (down 13% qoq).
  • Term loan declined from Rs50cr as of March 31, 2018, to Rs35cr as of June 30, 2018.
  • Railway order book stood at Rs300cr as of June 30, 2018, double the value from the year-ago period.


Highlights from post result conference call


Agri Machinery segment:

  • Company gained 100bps market share in Q1FY19.
  • Tractor industry grew 18% yoy in North and Central India and 32% yoy in South and Western India
  • New products such as “Atom” compact tractors and paddy specialist tractors was monthly sales run-rate of 60-70 units. This is likely to increase to 250-300 units from October 2018 onwards.
  • Industry will grow between 0-2% in Q2FY19 due to timing of festive season.
  • Escorts credit is financing nearly 1,000 units/month. Coverage has been increasing, and is expected to reach 70-80% of dealerships by December 2018.
  • Company to expand capacity by 50,000 units from current capacity of 1– 1.1 lakhs. It will spend Rs100cr for the same.
  • Emission norms to change for 50HP+ tractors in October 2020, which would increase vehicle price by Rs1,00,000/unit. Emission norm changes for other segments expected from CY2022 or CY2023.

Source- https://www.indiainfoline.com

Top Tractor News

महिंद्रा एंड महिंद्रा स्थापित करेगी नया ट्रैक्टर ग्रीनफील्ड प्लांट 

महिंद्रा एंड महिंद्रा स्थापित करेगी नया ट्रैक्टर ग्रीनफील्ड प्लांट 

महिंद्रा एंड महिंद्रा स्थापित करेगी नया ट्रैक्टर ग्रीनफील्ड प्लांट (Mahindra & Mahindra to set up new tractor greenfield plant), 50,000 ट्रैक्टरों का होगा सकेगा निर्माण, 250-300 करोड़ रुपए आएगी लागत

Tractor Retail Sales Increased by 34.14% in March 2021

Tractor Retail Sales Increased by 34.14% in March 2021

Tractor Retail Sales Increased by 34.14% in March 2021. Retail Sales report is based on the tractor registrations in RTO Offices of India, except few states.

ITL Commences Delivery of Solis Hybrid 5015 - 1st Hybrid tractor at Rs. 7.21 Lakhs

ITL Commences Delivery of Solis Hybrid 5015 - 1st Hybrid tractor at Rs. 7.21 Lakhs

ITL Commences Delivery of Solis Hybrid 5015 - 1st Hybrid tractor with Fully Advanced Japanese Hybrid Technology at Rs. 7.21 Lakhs

Shaktiman records Highest Sales growth in FY21 by selling 1.30+ Lakh Machines with 74% YoY Growth

Shaktiman records Highest Sales growth in FY21 by selling 1.30+ Lakh Machines with 74% YoY Growth

Shaktiman records Highest Domestic Sales growth in FY21 by selling 1.30+ Lakh Machines and became largest exporter of Farming implements from India

close Icon

Find Your Right Tractor and Implements

New Tractors

Used Tractors

Implements

Certified Dealer Buy Used Tractor