Escorts Limited announced a profit of Rs 31.3 crore during the quarter ending September 30, 2016, against a profit of Rs 9.8 crore in the corresponding year of 2015, up by 219 percent.
The net profit for the first half of 2016 ending September witnessed an increase in profit of 74 percent at Rs 78.2 crore compared to Rs 45 crore last fiscal. The profit was contributed from all verticals of the company except for its auto products.
Escorts tractor sales went up by 35.4 percent at 15,482 units during the second quarter of the current fiscal, while the sales of the construction equipment also went up by 18.3 percent at 724 units against 612 units in the previous fiscal.
Chairman Mr. Rajan Nanda said, they were able to capitalise on good monsoons and the return of market demand both through increased sales and continuing returns from cost compression.
He further added that favorable monsoons had to be followed by concerted policy action to give agriculture sector a huge push.
He said, this is the time for a big impetus to farm mechanization, crop insurance and agriculture infrastructure. Even the construction industry too is showing signs of improvement and railways are on a healthy track.
Mr. Nikhil Nanda, Managing Director, Escorts Ltd said, their investment in better mix, increased coverage, enhanced efficiencies and product innovation will continue to deliver results and higher profitability when demand scenario improves.
He further said the company has made strategic investments in recent quarters in building human capital, strong brand and sharp market focus.
Mr. Nanda said the new products that they have introduced have been well received by customers, Their focus on quality, engagement with customers and cost efficiencies will be a continuous process.
They will continue to focus on efforts in strengthening their dealer network and focus on specific markets has helped them gain mindshare and market share in key agricultural zones.