Escorts Q3 net profit down 71%
The company had posted a net profit of Rs 45.83 crore in the quarter ended June 30, 2010, Escorts Limited said in a filing to the Bombay Stock Exchange. The firm follows an October-September fiscal year.
During the reporting quarter, the company's net sales declined by 9.58 per cent to Rs 728.96 crore from Rs 806.21 crore in the corresponding period last fiscal.
"The Escorts third quarter results reflect the impact of constrained sales and increase in material costs. Anticipating these developments, the company has made mid-third quarter corrections with a series of initiatives to strengthen growth and improve market share," Escorts Chairman and Managing Director Rajan Nanda said in a statement.
During the quarter, the company said while its agri-machinery division recorded sales of Rs 668.6 crore, its tractor volumes stood at 14,212 units.
Railway Equipment sales stood at Rs 43.6 crore while auto ancillary recorded sales of Rs 30.55 crore.
"We are also looking at a significant cost compression exercise and PwC-India, have been mandated to add value to our competitive position and to negate inflationary pressures," he said.
The company said it has lined up several initiatives including initiation of a cost compression exercise, re-gearing of marketing strategies, development of a new dealer base and customisation of products to meet farmer specific requirements.
"In the fourth quarter, Escorts will start benefiting from
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