Escorts Limited Q2 and H1 FY13 result and new tractors
Escorts Limited will launch a range of premium tractors in the country. Well versed with production of agricultural and industrial equipment, the engineering conglomerate will turn their attention to premium tractors, which will are scheduled to make their entry into Indian markets in 2015.
The first such premium tractor is code named IVR3. This will be the company’s offering in the form of a heavy duty tractor which will possess 55 bhp and above. Yet in initial stages of development, Escorts India is in talks with a host of global companies for technological collaborations. Experimentation is being carried out with favorable results.
These premium products will be highly beneficial to farmers in India, especially in drought ridden areas and areas where there is severe water scarcity. Technologies at work in Korea, display water saving facilities wherein tractors use just 20 liters of water as against 100 liters to irrigate an entire field. However, these premium tractors will come at a steep price as they will be of the finest quality and will sport technologies and features which will be a class apart.
Escorts Limited has a comprehensive range of tractors. The company possesses over 45 variants all ranging from 25 to 80 hp while they also manufacture and market a range of industrial equipment such as cranes, loaders, forklifts and rollers. Escorts reported H1 EBIDTA was up by 31%, 81.6 Cr in H1FY12 to Rs 107.3 Cr in H1FY13. PAT was up by 103% from Rs 32.3 Cr in H1FY12 to Rs 65.6 Cr in H1FY13. Turnover though was lower at Rs 2,028.8 Cr in H1FY13 in comparison to Rs 2,056.7 Cr in H1FY12. Tractor sales volume was flat at 31,870 units in H1FY13 as compared to 31,640 units in H1FY12.
For Q2 FY13, EBIDTA was up by 6.1% from Rs 51.2 Cr in Q2FY12 to Rs 54.3 Cr in Q2FY13. PAT increased by 61.6% from Rs 23.2 Cr in Q2FY12 to Rs 37.5 Cr in Q2FY13, and marks an increase of 33.2% for Rs 28.1 Cr in Q1FY13.
Rajan Nanda, Chairman & Managing Director, Escorts Limited said, “Agriculture plays a vital role in driving the nation’s economic growth. India is witnessing a rapid shift to entrepreneurial farming, where the farmer demands a product suited to his commerce. Escorts Ltd. has well placed its product offerings both in the cost efficient and premium segment to optimize its growth potential. Our strategic path is to synergize technology, products and processes to meet the emerging challenges and deliver value to all our stakeholders. The infrastructure sector holds out promise for the future. We see opportunity in bridging the demand supply gap in order for us to achieve over 8% GDP growth as outlined in the 12th five year plan.”
Nikhil Nanda, Joint Managing Director, Escorts Limited said, “We have significantly increased our operating margin with a sharp focus on cost discipline, inter function and group synergies and a diversified bouquet of products. Our mission is to deliver a high level of operational excellence by deploying frugal and lean work ethics and rationalizing our operations. Our focus and commitment remains on improving operating margins through effective management of capital employed, to achieve targeted bottom line growth.”