The rising number of infrastructure projects in the country leads to the demand for Construction Equipment in the country, which has reflected on sales of Construction equipment manufacturers.
Country’s one of the leading Construction equipment makers Escorts Construction Equipment has benefited from the demand of CE, its sale surged in second quarter of this fiscal ending September 30. During the period, the company has recorded a growth of 18.3% at 724 units as against 612 units in the corresponding quarter in the previous fiscal.
In the first half (H1) of this fiscal, Company’s construction equipment sales grew by 30.6% at 1,463 units as against 1,120 units in the corresponding period.
The Escorts Ltd (consist four divisions- Agri Machinery, Construction Equipment, Railway Products and Auto Products) has reported a profit of Rs 31.3 crore in the second quarter of FY 2016-17, as against a profit of Rs 9.8 crore in the corresponding quarter in the previous fiscal. Its net profit for the half year (H1) ending September 2016 reported Rs 78.2 crore, up by 74% against Rs 45 crore in the corresponding period last year.
In its earning presentation, The Escorts Ltd described the overall Construction industry overview of Q2, as per the presentation, Country’s construction equipment industry grew by 27% to 7902 units in quarter ending September 30, 2016, as against corresponding period last year.
“All major segments like Earth Moving, Material handling, Road Construction have seen a positive movement, and Earthmoving and material handling leading the race. Served industry (Backhoe Loaders, PnC and Compactors) went up by 31% in Q2 FY17 with respect to last year,” it said.
Backhoe loaders (BHL) have been the biggest gainer in Q2FY17 (July-September) with a growth of 36%, followed by cranes with 22% and compactors by 7%, it added.
In Tractor segment, the sales grew by 35.4% at 15,482 units during the second quarter of the current fiscal.
On the results, Mr. Rajan Nanda, Chairman Escorts Ltd said, “We were able to capitalize on good monsoons and return of market demand both through increased sales and continuing returns from cost compression. Favourable monsoons have to be followed by concerted policy action to further give agriculture sector a huge push. This is the time for a big impetus to farm mechanization, crop insurance and agriculture infrastructure. The construction industry too is showing signs of improvement and railways are on a healthy track. ”
Escorts Construction Equipment manufactures and markets a diverse range of construction and material handling equipment. Its diverse product portfolios are Material Handling Equipment (Pick-n- Carry Cranes, Crawler cranes, Articulated boom Cranes, Tower Cranes, Truck & All Terrain Truck cranes), Earth Moving Equipment (Loadmax-Loader, Backhoe Loader DIGMAX and Wheel Loaders), Road Construction Equipment (Tandem Vibratory Compactors, Vibratory Soil Compactors, and Motor Grader) and Utility Equipment (Telescopic Handlers and Fork Lift).
Source: Information has been obtained from Escorts Ltd