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Tractors and agricultural equipment maker Escorts announced on Monday a 9 per cent rise in its net profit to Rs 25.4 crore for the quarter ending December 31, 2010. The profits were boosted by a robust demand for tractors.
The company, which follows an October-September financial year, posted a 38 per cent rise in its net sales to Rs 827.78 crore.
Chairman and Managing Director Mr. Rajan Nanda said, “Escorts’ first quarter results reflect a profitable quarter with increase in sales performance in the tractor segment. The industry is faced with rising inflation, which will be a test of our managerial initiatives to neutralize increasing costs.”
Escorts’ Agri Machinery Division recorded 45 per cent higher revenues at Rs 773 crore, with tractor volumes increasing 20 per cent to 16,333 units in the quarter.
Mr Nikhil Nanda, Joint Managing Director said, “Whilst the sales growth has been steady, our focus will continue to be to improve EBITDA and manage the challenge of rising input costs. Financial charges have seen a downward trend and this is a reflection of several initiatives to improve fund management.Our construction business is seeing growth in the year ahead and we are geared to participate in this opportunity.”
He added that the company has several product initiatives in the pipeline to support the modernization plans of the Indian Railways.
Escorts shares at the BSE fell 4.05 per cent to Rs 131.55 on Monday.
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