Escorts Results for Jun 2016 are out. The leading engineering conglomerates with presence across agri- machinery, construction, materials handling equipment etc. registered a 10% growth in vehicle sales for the quarter ended Jun 2016 with major hit from international sales which fell by 50%.
Mr. Rajan Nanda – Chairman of the company said: “The last quarter has shown a welcome upward trend in the market demand. The construction industry is showing signs of improvement and railways are on a healthy track.”
Result Analysis: Escorts
The company registered de-growth in Auto Ancillary business with revenues falling by a third to Rs. 20 crore with Construction equipment business witnessed a massive growth of 32% at Rs. 125 crore.
- Total Income from Operations increased 9.36% to Rs. 1,051 crore.
- Profit After tax increased 33.5% to Rs. 46.95 crore.
- EPS increased by 33.5% to Rs. 3.94 per share.
Other notable points were:
- Inventory levels noticed a bump by Rs. 10 crore to Rs. 36 crore.
- Exceptional Item of Rs. 6.2 crore on the back of Voluntary Retirement Scheme introduced by the company.
- Tax Expense increased 7 times from Rs. 2.24 crore to Rs. 19.25 crore.
- Revenue from the automotive segment stood at Rs. 6,355.84 crore compared to Rs. 6,098.36 a year ago. PAT from this segment stood at 20% or Rs. 1207.49 crore.
Disclosure: Analyst or Family do not hold the stock
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