Escorts Kubota Achieves Q2 PAT of INR 223 Crore

Escorts Kubota Limited has reported a robust performance in the July-September 2023 period. They achieved a consolidated profit after tax of INR 223.29 crore, significantly surpassing last year's figure of INR 98.80 crore. The farm and construction equipment maker's total income for Q2 FY24 reached INR 2,154 crore. This marks a notable increase from INR 1,968 crore in Q2 FY23.

However, in the agricultural machinery sector, tractor volumes slightly dipped to 22,024 units, compared to 23,703 units in the same period last year. Despite this, the company demonstrated resilience. Segment revenues stood at INR 1,394.2 crore, experiencing a 4.2% decrease. Furthermore, there was an impressive 381 basis points increase in the EBIT margin, reaching 12.2%. This boost was attributed to better realisation and a softening trend in commodity prices.

Escorts Kubota Limited maintained its strength in the first half of September 2023. Tractor volumes reached 48,606 units, which was just slightly down from the previous year's 50,500 units. Notably, the segment's revenue remained stable at INR 3,061.1 crore, compared to INR 3,050.6 crore in the corresponding period last year.

The real highlight, however, was the EBIT margin. It witnessed a significant 334 bps increase, reaching 12.9% in the first half of the current fiscal year. This is up from 9.5% in the same period last year.

Escorts Kubota Limited witnessed an outstanding 72% surge in construction equipment volumes. In Q2 FY24, the company sold 1,577 units, marking a substantial leap from the 917 units sold in the previous year. This remarkable growth translated into record-breaking revenues, totalling INR 415.8 crore, marking a remarkable 71.9% increase. Notably, the segment's EBIT margin saw a significant turnaround. It soared to 10.2%, marking a substantial improvement from the negative 2.6% reported in the same period the previous year.

For the first half of the fiscal year ending in September 2023, Escorts Kubota Limited continued its strong performance. Construction equipment volumes rose by 56.7% to 2,950 units. Segment revenue reached a record INR 775.9 crore. The EBIT margin for this period improved to 9%, demonstrating the company's sustained growth and profitability.

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