Farm equipment and construction equipment firm Escorts Kubota Ltd on Friday reported a 43 per cent decline in consolidated net profit at Rs 98.8 crore in the second quarter ended September 30, adversely impacted by high commodity prices and impairment of investment in a joint venture.
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The company had posted a consolidated net profit of Rs 173.47 crore in the same last quarter, Escorts Kubota Ltd said in a regulatory filing.
Consolidated revenue from operations during the quarter under review stood at Rs 1,890.8 crore, as against Rs 1,690.4 crore in the year-ago period.
Total expenses were higher at Rs 1,781.24 crore, as compared to Rs 1,501.18 crore in the same period a year ago.
The results were “adversely impacted due to unabsorbed inflation, both in commodity and other costs and an exceptional item of Rs 72.8 crore on account of impairment of investment in the joint venture Tadano Escorts India Pvt Ltd”, Escorts Kubota said.
During the quarter, domestic tractor sales were up by 12.9 per cent at 21,396, while exports also grew by 8.7 per cent at 2,307 units, highest ever in any quarter.
The agri machinery products segment revenue was at Rs 1,454.9 crore in quarter ended September 2022, as against Rs 1,257.0 crore in corresponding period last fiscal, it said adding.
Construction equipment volumes were lower at 917 units, as against 1,074 units in the corresponding period last fiscal. Revenue was Rs 241.9 crore, as against Rs 249.7 crore in the year-ago quarter, the company said.
The railway products division recorded revenue of Rs 182.0 crore, as against Rs 170.2 crore in the corresponding quarter last fiscal.
“There has been a positive momentum across businesses, and we expect it to continue. Overall macroeconomic factors and farmer sentiments remain positive led by above normal monsoon and onset of an early festive season which will favorably support agri business,” Escorts Kubota Chairman and Managing Director, Nikhil Nanda said.
With increasing flow of government investments for infrastructure development, the demand for construction equipment is likely to be good, he added. PTI RKL DRR
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