Construction Industry News
Escorts Kubota reported a net profit of Rs 87.7 crore in the quarter ended September 30, 2022, compared to a profit of Rs 176.7 crore in the corresponding quarter of the previous fiscal year, which was negatively impacted by unabsorbed inflation, both in raw materials and other costs and an exceptional item of Rs 72.8 crore due to impairment of investments in the joint venture Tadano Escorts India.
Revenue from operations was Rs 1,883.5 crore in the quarter ended September 2022, against Rs 1,678.8 cores in the corresponding quarter of the previous fiscal year. EBIDTA for the quarter ended September 30, 2022, stood at Rs 152.7 crore versus Rs 226.7 crore in the corresponding quarter of the previous fiscal year.
The operating income amounted to Rs 3,898.3 crore in the first half ending in September 2022, compared to Rs 3,355.8 crore in the corresponding period last fiscal year. The standalone profit before tax and before exceptional items of Rs 72.8 crore stands at Rs 389.5 crore as against Rs 483.6 crore in the corresponding period of the last fiscal year.
On a consolidated level, the operating income was Rs 3,922.9 crore versus Rs 3,397.7 crore in the first half year ended September 2021. Consolidated net profit recorded at Rs 239.4 crore in the first half ended September 30, 2022, versus a profit of Rs Rs 351.9 crore in the corresponding period last fiscal. EPS reported at Rs 22.14 versus Rs 35.75 in the corresponding period last fiscal year.
Nikhil Nanda, Chairman and CEO, said of the results: "There is positive momentum across all businesses and we expect it to continue. Overall macroeconomic factors and farmer sentiment remain positive, led by a more than normal monsoon and the beginning of an early holiday season that will favorably support agribusiness. With the increasing flow of government investment in infrastructure development, demand for construction equipment is likely to be good. Our broad product line in the rail sector has delivered good order bookings and we expect a strong fiscal future. We hope also that various government actions will help stabilize inflation to support the economy in general and boost the country's overall growth and development.”
According to Deputy General Manager Seiji Fukuoka, “With Escorts Kubota Limited's strategic focus and integrated strength, several initiatives will drive overall business growth and deliver improved operational efficiencies. India is a growing economy and we operate in the core sectors of growth so there are huge opportunities to be exploited by all businesses. There has been a positive trend and we expect it to strengthen with an innovative product line on the horizon.”
Railway Products Division: Second quarter revenue was Rs 182.0 crore in the quarter ended September 2022, our ever highest quarterly revenue, up 7.0% from Rs 170.2 crore in the corresponding quarter. The EBIT margin was 14.6% in the quarter ended September 2022, compared to 17.3% in the same period last fiscal year.
For the first half of the current fiscal railway product segment, the turnover was Rs 355.4 crore as against Rs 289.6 crore in the corresponding period last fiscal year. The EBIT margin for the first half of the current fiscal year was 14.1%, compared to 16.2% in the corresponding period last fiscal year.
The order book for the division was over Rs 900 crore at the end of September 2022.
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