Escorts Ltd Q3 net down -32.27% yoy at Rs194.19cr on sharp spike in input and inventory costs

8 Feb 2022 , 10:32 PM

Escorts Ltd reported -2.84% yoy fall in total sales revenues for the Dec-21 quarter on consolidated basis at Rs1,984cr. On a sequential basis, the revenues were up by 18.55%.

During the December 2021 quarter, the agri machinery business saw revenues fell -8.6% at Rs1,527cr on a yoy basis. The construction equipment business saw 12.9% growth in the sales to Rs.276cr while the railway equipment business grew sharply by 48.7% at Rs174cr.

Tractor volumes for the quarter stood at 25,325 units while construction equipment volumes were at 1,151 units in the quarter. Rural cash flows were impacted by delayed harvest of Kharif crops and the late monsoon rains.

For the Dec-21 quarter, the operating profits were down on a yoy basis by -26.26% at Rs270.30cr. During the quarter, EBIT margins for the agri machinery segment was up 76 bps at 15.8%.

However, due to steep inflation the margins were sharply lower on sequential basis by 432 bps. Escorts construction equipment EBIT margins were down 114 bps at 2.5%due to steep inflation in commodities. Even for the railways products division, the EBIT margins were down 296 bps at 14.3%.  

Operating margins tapered on the back of higher inventory costs from 17.95% in Dec-20 quarter to 13.62% in the Dec-21 quarter. Operating margins were higher on a sequential basis by 16 bps.

Net Profit after tax (PAT) for the Dec-21 quarter was down -32.27% yoy at Rs194.19r on the back of the operating pressures getting transmitted to the bottom line.

PAT margins tapered from 14.04% in the Dec-20 quarter to 9.79% in the Dec-21 quarter. The PAT margins were lower on a sequential basis by 56 bps.

Financial highlights for Dec-21 compared yoy and sequentially

 

	Escorts Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 1,984.28	₹ 2,042.23	-2.84%	₹ 1,673.85	18.55%
Operating Profit (Rs cr)	₹ 270.30	₹ 366.54	-26.26%	₹ 225.22	20.02%
Net Profit (Rs cr)	₹ 194.19	₹ 286.71	-32.27%	₹ 173.17	12.14%
Diluted EPS (Rs)	₹ 19.67	₹ 29.17		₹ 17.59
Operating Margins	13.62%	17.95%		13.46%
Net Margins	9.79%	14.04%		10.35%