Escorts Kubota reported a net profit of Rs 87.7 crore in the quarter that ended September 30, 2022, as against a profit of Rs 176.7 crore in the corresponding quarter of the previous fiscal, which was adversely impacted due to unabsorbed inflation, both in commodity and other costs and an exceptional item of Rs 72.8 crore on account of impairment of investment in the Joint Venture Tadano Escorts India.

Revenue from operations was at Rs 1,883.5 crore in the quarter that ended September 2022 as against Rs 1,678.8 cores in the corresponding quarter of the previous fiscal. EBIDTA for the quarter that ended September 30, 2022, came at Rs 152.7 crore as against Rs 226.7 crore in the corresponding quarter of the previous fiscal.

Revenue from operations was at Rs 3,898.3 crore in the first half ended September 2022 as against Rs 3,355.8 crore in the corresponding period last fiscal. The standalone profit before tax and before exceptional items of Rs 72.8 crore is at Rs 389.5 crore as against of Rs 483.6 crore in the corresponding period last fiscal.

At a consolidated level, revenue from operations was at Rs 3,922.9 crore as against Rs 3,397.7 crore in the first half year ending September 2021. Consolidated net profit recorded at Rs 239.4 crore in the first half ended September 30, 2022, as against a profit of Rs 351.9 crore in the corresponding period last fiscal. Adversely impacted due to unabsorbed commodity price inflation coupled with an exceptional item of Rs 53.1 crore on account of impairment of investment in the joint venture Tadano Escorts India. EPS reported at Rs 22.14 as against Rs 35.75 in the corresponding period last fiscal.

Speaking on the results, Nikhil Nanda, Chairman and Managing Director, said, There has been a positive momentum across businesses, and we expect it to continue. Overall macroeconomic factors and farmer sentiments remain positive led by above normal monsoon and the onset of an early festive season which will favourably support agri business. With the increasing flow of Government investments in infrastructure development, the demand for construction equipment is likely to be good. Our broad product line in the railway business has been garnering good order booking and we expect a strong fiscal ahead. We also hope that various government actions will help in stabilising inflation to support the economy at large, propelling the countrys overall growth and development.

As per Deputy Managing Director, Seiji Fukuoka, With strategic focus and integrated strength of Escorts Kubota Limited, various initiatives will catapult overall business growth and bring in better operational efficiency. India is a growing economy, and we operate in core sectors of growth, thus there is immense opportunity to be leveraged across businesses. There has been a positive trend and we expect it to get stronger with innovative product line ahead.

Segment wise performance
Agri Machinery Products: Tractor volumes at 23,703 units in the quarter that ended September 2022 went up by 12.5% as against 21,073 units in the corresponding period last fiscal. Segment revenue was at Rs 1,454.9 crore in the quarter that ended September 2022 as against Rs 1,257.0 crore in the corresponding period last fiscal. This quarter's steep inflation in commodities prices, resulted in a lower EBIT margin at 8.4%, as compared to 14.9% in the corresponding period last fiscal.

For the first half of the current fiscal, tractor volumes went up by 7.4% at 50,500 units as compared to 47,008 units in the corresponding period last fiscal. Segment revenue also went up by 14.1% at Rs 3,050.6 crore in the half year ended September 2022 as against Rs 2,673.7 crore in the corresponding period last fiscal. EBIT margin for the first half of the fiscal came at 9.5% as compared to 15.2% in the corresponding period last fiscal.

Construction Equipment: Construction equipment sales volume for the quarter ended September 2022 was 917 machines as against 1,074 machines in the corresponding period last fiscal. Segment revenues came at ? 241.9 crore in the quarter ending September 2022 as against Rs 249.7 crore in the corresponding period last fiscal. EBIT margin stood at negative 2.6% as against 3.6% in the corresponding period last fiscal. For the first half of the current fiscal, construction equipment volumes were up by 12.1% at 1,883 units as compared to 1,680 units in the corresponding period last fiscal. Segment revenue came at Rs 488.0 crore in the half year ended September 2022 as against Rs 390.8 crore in the corresponding period last fiscal. EBIT margin for the first half of the current fiscal was at negative 0.8% as against 1.4% in the corresponding period last fiscal.

Railway Products Division: Revenue for the second quarter came at Rs 182.0 crore in the quarter ending September 2022, our ever-highest quarterly revenue, up by 7.0% as against Rs 170.2 crore in the corresponding quarter. EBIT margin stood at 14.6% in the quarter that ended September 2022 as against 17.3% in the corresponding period last fiscal.

For the first half of the current fiscal railway's products segment revenue came at Rs 355.4 crore as against Rs 289.6 crore in the corresponding period last fiscal. EBIT margin for the first half of the current fiscal stood at 14.1% as compared to 16.2% in the corresponding period last fiscal.

The order book for the division, at end of September 2022, was more than ? 900 crore.