Escorts Kubota has announced its financial results for FY2023, which was primarily impacted mainly due to commodity price inflation coupled with exceptional items.
For Q4 FY2023, the company reported revenue of Rs 2,214 crore, up 17 percent, EBITDA of Rs 233 crore, as against Rs 248 crore a year ago. The net profit came at Rs 216 crore as against a profit of Rs 190 crore in corresponding quarter of the previous year.
In fiscal 2023 the consolidated revenue from operations came at Rs 8,428 crore, up 15.7 percent as against Rs 7,282 crore in the previous year. The profit after tax was Rs 636 crore versus Rs 735.6 crore a year ago. The profits were adversely impacted mainly due to commodity price inflation coupled with an exceptional item of Rs 97.2 crore on account of impairment of investment in the joint venture Tadano Escorts India and wholly owned subsidiary Escorts Crop Solutions.
During the year, the company sold 24,765 tractors, up 13 percent and 1,528 construction equipment’s up 18 percent.
Nikhil Nanda, Chairman and MD, Escorts Kubota said, “Our efforts are aligned with our mid-term business plan for achieving the targeted growth in coming years. In agri business, while the retail sales were impacted due to unseasonal rainfall and crop damage in certain regions, however, with better crop prices, improved finance availability and good water reservoir levels, we expect demand momentum to continue across geographies in the coming quarters.”
“We witnessed growth across the construction equipment portfolio towards the second half of this fiscal year across material handling, earth moving as well as road segment. The current market sentiments are positive, and demand is expected to remain buoyant due to the continuous focus of the government towards infrastructure projects.”
Seiji Fukuoka, Deputy MD, Escorts Kubota said, “Our efforts across domestic and export geographies are well mapped to leverage on opportunities across our core business verticals, and we are hopeful that with our strategic initiatives we will be able to achieve desired growth. Quality and performance will be our topmost priority and we will continue to focus on innovation and enhancing customer experience.”