Escorts Kubota posts 6% YoY decline in Dec quarter profit to Rs 180 crore

Farm and construction equipment manufacturer Escorts Kubota Ltd on Wednesday posted a 6.7 per cent decline in consolidated net profit to Rs 180.8 crore in the third quarter ended December 31, 2022.

The company had posted a consolidated net profit of Rs 193.71 crore in the same period last fiscal, Escorts Kubota Ltd said in a regulatory filing.

Consolidated revenue from operations during the quarter under review stood at Rs 2,291.35 crore as against Rs 1,998.29 crore in the year-ago period, it added.

Total expenses were higher at Rs 2,141.47 crore, up from Rs 1,756.7 crore in the corresponding quarter a year ago.

During the quarter the company sold 28,025 units, up 10.7 per cent from 25,325 units in the year-ago period. The agri segment revenue rose 12.4 per cent at Rs 1,708 crore as compared to Rs 1,519.3 crore in the same period last fiscal.

Construction equipment sales volume were at 1,209 machines, up 5 per cent as against 1,151 machines in the same period a year ago, with the segment posting revenue of Rs 306.1 crore, up 10.7 per cent year-on-year.

The railway products division had revenue of Rs 249.3 crore at a growth of 43.4 per cent from Rs 173.9 crore in the year-ago period, the company said.

Escorts Kubota Chairman and Managing Director Nikhil Nanda said, "There has been positive and continuous growth across businesses and we feel government spending on core sectors will favour demand across industry segments."

In the agri segment, he said rural sentiments continue to remain favourable owing to improved rabi sowing assisted by good monsoon this year.

On the outlook, Nanda said, "While inflation impact on margin may take some time to normalise, the overall macroeconomic factors remain favourable for overall economic growth.