For the quarter ending Sept2022, consolidated net sales (including other operating income) of Escorts Kubota has increased 11.86% to Rs 1890.8 crore compared to quarter ended sept 2021. Sales of Agri Machinery Products segment has gone up 15.89% to Rs 1,462.75 crore (accounting for 77.53% of total sales). Sales of Railway Equipments segment rose 6.96% to Rs 182.01 crore (accounting for 9.65% of total sales). Sales of Construction Equipment segment has gone down 3.14% to Rs 241.89 crore (accounting for 12.82% of total sales). Inter-segment sales came down from Rs 2.49 crore to Rs 1.43 crore. Profit before interest, tax and other unallocable items (PBIT) has slumped 36.76% to Rs 142.43 crore. PBIT of Agri Machinery Products segment fell 34.67% to Rs 122.11 crore (accounting for 85.73% of total PBIT). PBIT of Railway Equipments segment fell 9.30% to Rs 26.64 crore (accounting for 18.70% of total PBIT). PBIT of Construction Equipment reported loss of Rs 6.32 crore compared to profit of Rs 8.95 crore.
PBIT margin of Agri Machinery Products segment fell from 14.81% to 8.35%. PBIT margin of Railway Equipments segment fell from 17.26% to 14.64%. PBIT margin of Construction Equipment segment fell from 3.58% to 2.61%. Overall PBIT margin fell from 13.39% to 7.55%.
Operating profit margin has declined from 13.42% to 7.90%, leading to 34.12% decline in operating profit to Rs 149.42 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 64.49% to 69.05%. Purchase of finished goods cost fell from 6.99% to 5.88%. Employee cost increased from 7.00% to 7.27%. Other expenses rose from 10.38% to 10.63%. Other income rose 59.42% to Rs 78.05 crore. PBIDT fell 17.51% to Rs 227.47 crore. Provision for interest fell 27.80% to Rs 2.96 crore. Loan funds declined from Rs 55.22 crore as of 30 September 2021 to Rs 48.66 crore as of 30 September 2022. Inventories rose to Rs 1,365.97 crore as of 30 September 2022 from Rs 1,260.41 crore as of 30 September 2021. Sundry debtors were higher at Rs 1,013.73 crore as of 30 September 2022 compared to Rs 825.81 crore as of 30 September 2021. Cash and bank balance declined from Rs 309.73 crore as of 30 September 2021 to Rs 292.48 crore as of 30 September 2022. Investments rose to Rs 4,476.35 crore as of 30 September 2022 from Rs 2,387.77 crore as of 30 September 2021 .
PBDT fell 17.36% to Rs 224.51 crore. Provision for depreciation rose 10.18% to Rs 36.9 crore. Fixed assets increased to Rs 1,871.98 crore as of 30 September 2022 from Rs 1,829.02 crore as of 30 September 2021. Intangible assets increased from Rs 51.17 crore to Rs 60.88 crore.
Profit before tax down 21.23% to Rs 187.61 crore. Share of profit/loss was 24.02% lower at Rs -4.75 crore. Provision for tax was expense of Rs 31.01 crore, compared to Rs 60.88 crore. Effective tax rate was 23.89% compared to 25.98%.
Net profit attributable to owners of the company decreased 42.93% to Rs 98.83 crore. Equity capital decreased from Rs 134.83 crore as of 30 September 2021 to Rs 131.94 crore as of 30 September 2022 . Per share face Value remained same at Rs 10.00.
Promoters' stake was 72.90% as of 30 September 2022 ,compared to 36.59% as of 30 September 2021 .
For year-to-date (YTD) results analysis.
Net sales (including other operating income) of Escorts Kubota has increased 15.46% to Rs 3922.86 crore. Sales of Agri Machinery Products segment has gone up 13.68% to Rs 3,073.66 crore (accounting for 78.47% of total sales). Sales of Railway Equipments segment rose 22.68% to Rs 355.36 crore (accounting for 9.07% of total sales). Sales of Construction Equipment segment has gone up 24.88% to Rs 488.03 crore (accounting for 12.46% of total sales). Inter-segment sales rose Rs 2.49 crore to Rs 3.25 crore.
Profit before interest, tax and other unallocable items (PBIT) has slumped 26.57% to Rs 339.74 crore. PBIT of Agri Machinery Products segment fell 28.46% to Rs 293.49 crore (accounting for 86.39% of total PBIT). PBIT of Railway Equipments segment rose 7.18% to Rs 50.13 crore (accounting for 14.76% of total PBIT). PBIT of Construction Equipment reported loss of Rs 3.88 crore compared to profit of Rs 5.66 crore.
PBIT margin of Agri Machinery Products segment fell from 15.17% to 9.55%. PBIT margin of Railway Equipments segment fell from 16.15% to 14.11%. PBIT margin of Construction Equipment segment fell from 1.45% to 0.80%. Overall PBIT margin fell from 13.67% to 8.67%.
Operating profit margin has declined from 13.80% to 9%, leading to 24.69% decline in operating profit to Rs 353.03 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 63.82% to 68.19%. Purchase of finished goods cost fell from 6.70% to 5.90%. Employee cost decreased from 7.39% to 6.91%. Other expenses rose from 9.86% to 10.62%. Other income rose 23.11% to Rs 113.57 crore. PBIDT fell 16.83% to Rs 466.6 crore. Provision for interest fell 18.73% to Rs 6.16 crore. Loan funds declined from Rs 55.22 crore as of 30 September 2021 to Rs 48.66 crore as of 30 September 2022. Inventories rose to Rs 1,365.97 crore as of 30 September 2022 from Rs 1,260.41 crore as of 30 September 2021. Sundry debtors were higher at Rs 1,013.73 crore as of 30 September 2022 compared to Rs 825.81 crore as of 30 September 2021. Cash and bank balance declined from Rs 309.73 crore as of 30 September 2021 to Rs 292.48 crore as of 30 September 2022. Investments rose to Rs 4,476.35 crore as of 30 September 2022 from Rs 2,387.77 crore as of 30 September 2021 .
PBDT fell 16.80% to Rs 460.44 crore. Provision for depreciation rose 12.65% to Rs 73.72 crore. Fixed assets increased to Rs 1,871.98 crore as of 30 September 2022 from Rs 1,829.02 crore as of 30 September 2021. Intangible assets increased from Rs 51.17 crore to Rs 60.88 crore.
Profit before tax down 20.75% to Rs 386.72 crore. Share of profit/loss was 13.36% higher at Rs -12.32 crore. Provision for tax was expense of Rs 81.96 crore, compared to Rs 121.83 crore. Effective tax rate was 25.50% compared to 25.72%.Net profit attributable to owners of the company decreased 31.84% to Rs 239.47 crore.
Equity capital decreased from Rs 134.83 crore as of 30 September 2021 to Rs 131.94 crore as of 30 September 2022 . Per share face Value remained same at Rs 10.00.
Promoters' stake was 72.90% as of 30 September 2022 ,compared to 36.59% as of 30 September 2021 .
Cash flow from operating activities increased to negative Rs -216.02 crore for YTD ended September 2022 from negative Rs -512.13 crore for YTD ended September 2021. Cash flow used in acquiring fixed assets during the YTD ended September 2022 stood at Rs 100.75 crore, compared to Rs 81.51 crore during the YTD ended September 2021.
Full year results analysis.
Net sales (including other operating income) of Escorts Kubota has increased 3.82% to Rs 7282.65 crore. Sales of Agri Machinery Products segment has gone down 1.80% to Rs 5,629.34 crore (accounting for 77.62% of total sales). Sales of Railway Equipments segment rose 32.83% to Rs 636.21 crore (accounting for 8.77% of total sales). Sales of Construction Equipment segment has gone up 27.15% to Rs 986.79 crore (accounting for 13.61% of total sales). Profit before interest, tax and other unallocable items (PBIT) has slumped 14.02% to Rs 977.74 crore. PBIT of Agri Machinery Products segment fell 16.75% to Rs 859.55 crore (accounting for 87.91% of total PBIT). PBIT of Railway Equipments segment rose 22.89% to Rs 94.32 crore (accounting for 9.65% of total PBIT). PBIT of Construction Equipment segment fell 14.17% to Rs 23.87 crore (accounting for 2.44% of total PBIT).
PBIT margin of Agri Machinery Products segment fell from 18.01% to 15.27%. PBIT margin of Railway Equipments segment fell from 16.02% to 14.83%. PBIT margin of Construction Equipment segment fell from 3.58% to 2.42%. Overall PBIT margin fell from 16.27% to 13.48%.
Operating profit margin has declined from 16.06% to 13.67%, leading to 11.66% decline in operating profit to Rs 995.41 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 59.16% to 61.70%. Purchase of finished goods cost rose from 6.42% to 6.95%. Employee cost decreased from 7.94% to 7.37%. Other expenses rose from 10.11% to 10.43%. Other income rose 8.37% to Rs 173.8 crore. PBIDT fell 9.16% to Rs 1169.21 crore. Provision for interest rose 12.22% to Rs 14.97 crore. Loan funds declined from Rs 60.61 crore as of 31 March 2021 to Rs 51.95 crore as of 31 March 2022. Inventories rose to Rs 846.56 crore as of 31 March 2022 from Rs 718.16 crore as of 31 March 2021. Sundry debtors were higher at Rs 792.62 crore as of 31 March 2022 compared to Rs 657.58 crore as of 31 March 2021. Cash and bank balance declined from Rs 1,321.76 crore as of 31 March 2021 to Rs 271.84 crore as of 31 March 2022. Investments rose to Rs 4,835.84 crore as of 31 March 2022 from Rs 1,938.02 crore as of 31 March 2021 .
PBDT fell 9.39% to Rs 1154.24 crore. Provision for depreciation rose 11.65% to Rs 132.06 crore. Fixed assets increased to Rs 1,873.58 crore as of 31 March 2022 from Rs 1,808.60 crore as of 31 March 2021. Intangible assets increased from Rs 52.32 crore to Rs 55.27 crore.
Profit before tax down 11.54% to Rs 1,022.18 crore. Share of profit/loss was 3,866.22% lower at Rs -29.35 crore. Provision for tax was expense of Rs 257.22 crore, compared to Rs 283.15 crore. Effective tax rate was 25.91% compared to 24.52%.
Net profit attributable to owners of the company decreased 15.49% to Rs 736.47 crore.
Equity capital decreased from Rs 134.83 crore as of 31 March 2021 to Rs 131.94 crore as of 31 March 2022 . Per share face Value remained same at Rs 10.00.
Promoters' stake was 28.10% as of 31 March 2022 ,compared to 36.59% as of 31 March 2021 .
Cash flow from operating activities decreased to Rs 32.28 crore for year ended March 2022 from Rs 1,128.66 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 186.34 crore, compared to Rs 125.59 crore during the year ended March 2021.
Other Highlights
In Q2 FY23, Domestic tractorvolume increased by 12.9% to 21,369 units and export tractor volumes up by 8.7%to 2307 units, highest ever in any quarter.In H1 FY23, tractor volumeincreased by 7.4% to 50,500 units on YoY baisIn Q2 FY23, constructionVolume decreased 14.6% YoY to 917 units. In H1 FY23, construction Volumeincreased 12.1% YoY to 1883 units.Domestic Tractor Market Sharein Q2 FY23 stood at 9.7% compared to 9% in Q2 FY22.Domestic Tractor Market Sharein H1 FY23 stood at 9.4% compared to 9.9% in H1 FY22.Order book for the railwaydivision, at end of sept 2022, was more than Rs 900 crore.ForQ2 FY23, Capacity utilization of EAM (Escorts Agri Machinery) segment wasaround 90% and capacity utilization of Construction Equipment segment wasaround 35%.InH1 FY23, Capacity utilization of EAM (Escorts Agri Machinery) segment wasaround 90% and capacity utilization of Construction Equipment segment wasaround 38%.