For the quarter ending March
2024, consolidated net sales (including other operating income) of Escorts Kubota has declined 5.46% to Rs 2093.53 crore compared to quarter ended March 2023. Sales of Agri Machinery Products segment has gone down 11.75% to Rs 1,401.43 crore (accounting for 67.01% of total sales). Sales of Railway Equipments segment fell 10.06% to Rs 213.35 crore (accounting for 10.20% of total sales). Sales of Construction Equipment segment has gone up 23.84% to Rs 476.60 crore (accounting for 22.79% of total sales). Inter-segment sales came down from Rs 1.92 crore to Rs 0.02 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 9.86% to Rs 240.96 crore. PBIT of Agri Machinery Products segment fell 0.79% to Rs 153.83 crore (accounting for 63.84% of total PBIT). PBIT of Railway Equipments segment rose 8.57% to Rs 35.96 crore (accounting for 14.92% of total PBIT). PBIT of Construction Equipment segment rose 64.27% to Rs 51.17 crore (accounting for 21.24% of total PBIT).
PBIT margin of Agri Machinery Products segment rose from 9.76% to 10.98%. PBIT margin of Railway Equipments segment rose from 13.96% to 16.85%. PBIT margin of Construction Equipment segment rose from 8.09% to 10.74%. Overall PBIT margin rose from 9.92% to 11.52%.
Operating profit margin has jumped from 10.53% to 12.45%, leading to 11.75% rise in operating profit to Rs 260.56 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 66.49% to 64.44%. Purchase of finished goods cost rose from 5.19% to 5.50%. Employee cost increased from 7.21% to 7.23%. Other expenses rose from 10.61% to 11.12%. Other income rose 39.48% to Rs 105.56 crore. PBIDT rose 18.55% to Rs 366.12 crore. Provision for interest rose 9.64% to Rs 3.98 crore. Loan funds declined from Rs 57.30 crore as of 31 March 2023 to Rs 53.09 crore as of 31 March 2024. Inventories rose to Rs 1,218.10 crore as of 31 March 2024 from Rs 1,217.68 crore as of 31 March 2023. Sundry debtors were lower at Rs 1,173.76 crore as of 31 March 2024 compared to Rs 1,179.65 crore as of 31 March 2023. Cash and bank balance rose to Rs 1,179.00 crore as of 31 March 2024 from Rs 471.90 crore as of 31 March 2023. Investments rose to Rs 5,219.90 crore as of 31 March 2024 from Rs 4,766.69 crore as of 31 March 2023 .
PBDT rose 18.65% to Rs 362.14 crore. Provision for depreciation rose 15.09% to Rs 44.16 crore. Fixed assets increased to Rs 1,947.15 crore as of 31 March 2024 from Rs 1,931.47 crore as of 31 March 2023. Intangible assets increased from Rs 73.36 crore to Rs 75.42 crore.
Profit before tax grew 19.17% to Rs 317.98 crore. Share of profit/loss was 36.27% higher at Rs 14.69 crore. Provision for tax was expense of Rs 80.78 crore, compared to Rs 61.16 crore. Effective tax rate was 24.28% compared to 22.03%.
Minority interest increased 66.67% to Rs -0.01 crore. Net profit attributable to owners of the company increased 16.36% to Rs 251.90 crore. Equity capital decreased from Rs 131.94 crore as of 31 March 2023 to Rs 110.50 crore as of 31 March 2024 . Per share face Value remained same at Rs 10.00.
Promoters’ stake was 67.64% as of 31 March 2024 ,compared to 72.90% as of 31 March 2023 .
Full year results analysis.
Net sales (including other operating income) of Escorts Kubota has increased 4.99% to Rs 8849.62 crore. Sales of Agri Machinery Products segment has gone down 3.38% to Rs 6,180.90 crore (accounting for 69.91% of total sales). Sales of Railway Equipments segment rose 12.89% to Rs 950.41 crore (accounting for 10.75% of total sales). Sales of Construction Equipment segment has gone up 45.01% to Rs 1,709.65 crore (accounting for 19.34% of total sales). Inter-segment sales came down from Rs 8.81 crore to Rs 0.90 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 50.57% to Rs 1,119.19 crore. PBIT of Agri Machinery Products segment rose 31.65% to Rs 781.09 crore (accounting for 69.79% of total PBIT). PBIT of Railway Equipments segment rose 54.70% to Rs 179.25 crore (accounting for 16.02% of total PBIT). PBIT of Construction Equipment segment rose 365.43% to Rs 158.85 crore (accounting for 14.19% of total PBIT).
PBIT margin of Agri Machinery Products segment rose from 9.27% to 12.64%. PBIT margin of Railway Equipments segment rose from 13.76% to 18.86%. PBIT margin of Construction Equipment segment rose from 2.89% to 9.29%. Overall PBIT margin rose from 8.83% to 12.66%.
Operating profit margin has jumped from 9.22% to 13.18%, leading to 50.05% rise in operating profit to Rs 1,166.68 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 67.22% to 63.50%. Purchase of finished goods cost fell from 5.94% to 5.56%. Employee cost increased from 7.07% to 7.27%. Other expenses fell from 10.72% to 10.61%. Other income rose 41.92% to Rs 398.69 crore. PBIDT rose 47.89% to Rs 1565.37 crore. Provision for interest rose 3.39% to Rs 13.72 crore. Loan funds declined from Rs 57.30 crore as of 31 March 2023 to Rs 53.09 crore as of 31 March 2024. Inventories rose to Rs 1,218.10 crore as of 31 March 2024 from Rs 1,217.68 crore as of 31 March 2023. Sundry debtors were lower at Rs 1,173.76 crore as of 31 March 2024 compared to Rs 1,179.65 crore as of 31 March 2023. Cash and bank balance rose to Rs 1,179.00 crore as of 31 March 2024 from Rs 471.90 crore as of 31 March 2023. Investments rose to Rs 5,219.90 crore as of 31 March 2024 from Rs 4,766.69 crore as of 31 March 2023 .
PBDT rose 48.46% to Rs 1551.65 crore. Provision for depreciation rose 11.22% to Rs 166.9 crore. Fixed assets increased to Rs 1,947.15 crore as of 31 March 2024 from Rs 1,931.47 crore as of 31 March 2023. Intangible assets increased from Rs 73.36 crore to Rs 75.42 crore.
Profit before tax grew 54.70% to Rs 1,384.75 crore. Provision for tax was expense of Rs 351.94 crore, compared to Rs 197.94 crore. Effective tax rate was 25.12% compared to 23.72%.
Net profit attributable to owners of the company increased 64.75% to Rs 1,049.11 crore.
Equity capital decreased from Rs 131.94 crore as of 31 March 2023 to Rs 110.50 crore as of 31 March 2024 . Per share face Value remained same at Rs 10.00.
Promoters’ stake was 67.64% as of 31 March 2024 ,compared to 72.90% as of 31 March 2023 .
Cash flow from operating activities increased to Rs 1,032.18 crore for year ended March 2024 from Rs 223.91 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 189.91 crore, compared to Rs 218.79 crore during the year ended March 2023.
Other Highlights
Board
recommended a dividend of Rs 18 per fully paid-up equity share of Rs 10 each
for the financial year 2023-24.
In Q4 FY24,
tractor volume stood at 21.253 units, down by 14.2% YoY. In FY24, tractor
volume stood at 95,858 units, down by 7.2% YoY.
In Q4 FY24,
construction Volume increased 17.5% YoY to 1798 units. In FY24, construction
Volume increased 42.2% YoY to 6548 units.
Order book
for the railway division, at end of March 2024, was approx Rs 950 crore.