Drop in Escorts net income impact sales, Q4 profit drops 28% to Rs 190m
On Friday, major agricultural machinery and construction equipment maker Escorts Ltd announced a 28.42% drop in its consolidated net profit to Rs 189.98 crore in the fourth quarter ended March 2022, impacted by lower sales .
The company had posted a consolidated net profit of Rs 265.41 crore in the same quarter of the previous financial year, Escorts said in a regulatory filing.
Construction equipment sales in the fourth quarter were 1,286 units, down 19.8% from the previous 1,604 units. For the financial year ended March 31, 2022, Escorts said its consolidated net profit was Rs 735.61 crore compared to Rs 871.63 crore in the prior year, down 15.6%.
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Operating revenue for FY22 was Rs 7,238.43 crore compared to FY21 Crore Rs 7,014.42. Escorts Ltd Chairman and Managing Director Nikhil Nanda said that the agricultural sector is experiencing favorable winds.
“With the forecast of a normal monsoon and good news on crop prices and production, we hope this sector will continue to thrive,” he said, adding that the construction and road sectors iron also showed signs of improvement. With government spending focused on these sectors, the situation will only get better from here, Nanda added.
However, he said, “continued inflation is a big cause for concern, both in terms of suppressing potential demand and the profitability of the ecosystem.” Escorts said its board had recommended a final dividend of 70%, at Rs.7 per share with a face value of Rs.10 for the financial year 2021-22.
(Edited by : Anand Singha)