Farm equipment maker Escorts share price continue to rally for second straight session on relatively better fiscal fourth quarter to March performance and the Rs 20 lakh crore stimulus package announced by the Prime Minister Narendra Modi led government is seen boosting the economy.
On Thursday, Escorts reported a 9.7% increase in consolidated net profit at Rs 127.73 crore for the fourth quarter ended March 31, 2020. The company had reported a net profit of Rs 116.42 crore in January-March period of 2018-19.
Total income declined to Rs 1,415.95 crore during the fourth quarter as against Rs 1,668.72 crore in the corresponding period a year ago.
For the full 2019-20 fiscal, the company posted a consolidated net profit of Rs 471.7 crore as compared with Rs 477.9 crore in 2018-19.
Total income for 2019-20 fiscal stood at Rs 5,907.69 crore as compared with Rs 6,354.42 crore in 2018-19.
There is a serious impact of the COVID-19 pandemic on the industry and respective business operations, and it will take some time to regain normalcy.
The company’s Q4FY20 tractor sales volumes were down 20% at 20,108 units. Its domestic tractor sales were at 19,122 units, down 21%. Escorts exported 986 tractors in the March quarter, as against 1,025 units in the year-ago period.
The company had reported an 11% decline in its annual tractor sales, which were at 86,018 units including export of 3,766 units in FY20. The firms holds 11.6% share in the domestic tractor market.
The tractor industry is likely to revive in FY21 led by a normal monsoon and an increase in minimum support price (MSP) of Rabi crops, which is expected to boost rural income.
Escorts is preparing to set new norms through reinventing, innovating and digitising it’s way to engage and connect stakeholders for the business operations ahead even as the uncertainty of affairs still exist.
The company’s board recommended a final dividend of Rs 2.5 per share of face value Rs 10 for 2019-20.
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