Escorts Kubota has announced its financial results for the first quarter of Q1 FY2023. The company reported revenue of Rs 2,014 crore, up 20.86 per cent, as against Rs 1,677 crore for the same period last year.
The net profit came at Rs 147.5 crore in quarter ended June 30, 2022, down 20 per cent as against a profit of Rs 185.2 crore in the corresponding quarter of the previous fiscal.
The company said that although it took price increase across its product portfolio along with cost reduction efforts, but steep inflation in commodity prices coupled with adverse product mix impact due to industry shift towards lower horsepower segment adversely impacted operating profit for the quarter ended June. During the quarter profit before tax was also impacted due to lower other income due to temporary mark-to-market losses on treasury Investments.
Nikhil Nanda, Chairman and MD, Escorts Kubota said, “We are excited to be Escorts Kubota (EKL) now. During the first quarter of current fiscal industry in Agri sector has witnessed positive trend, after 3 quarter of degrowth. With onset of monsoon, and likely record kharif crop production, rural liquidity and farmer sentiments are expected to gradually improve. In our construction business, we have outperformed the industry in our served markets and expect growth momentum to continue with government’s thrust on infrastructure development. We are witnessing good order booking in our railway business and expect a strong fiscal going ahead. With recent government actions, inflation may stabilise in near term and operating leverage may further possibly help in partially diluting the impact on margins in coming quarters.”