Farm equipment manufacturer Escorts Kubota reported an all-time high standalone net profit of Rs 282.8 crore in the quarter ended June 20203 (Q1 FY24), up 91%, as compared to Rs 147.5 crore reported during the corresponding quarter in the previous fiscal.
The revenue of operations of Escorts Kubota also jumped 15.5% at Rs 2,327.7 crore in Q1 FY24, as compared to Rs 2015 crore in the same quarter last year.
“In the agribusiness, overall sentiments were mixed last quarter, as markets with good rainfall and crop prices showed good momentum, and markets with a delayed monsoon had a slightly dampened demand. Going forward, with further advancement of monsoon across the country, adequate reservoir levels, better liquidity, and consumer credit availability, we expect the demand momentum to improve,” Chairman and Managing Director Nikhil Nanda said.
During the quarter under review, the company’s Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Rs 327 crore, up 62.6% against Rs 201.6 crore during the corresponding quarter of the previous fiscal year. Sequentially, the EBITDA grew 38.6% from Rs 235.8 crore.
Nanda added, “The construction business has done well and is poised well for further growth with the government’s thrust and focus on faster execution of infrastructure projects. The demand for construction machinery is still buoyant, and post-monsoon, we expect the momentum to further accelerate. The railway business, with innovative products and an expanded portfolio, is well aligned with the growing requirements of rail transport both on the domestic and international fronts and continues to grow.”
According to Deputy Managing Director Seiji Fukuoka, in addition to domestic business growth, the company is strategically aligning its efforts to leverage its export network for further impetus and to open new opportunities. “The innovative product line’s expanded coverage and quality excellence remain our top priorities. Capacity building and process optimisation will help us achieve further growth and create new benchmarks in customer experience,” he added.