Escorts Kubota announced its financial results for the first quarter of the first quarter of fiscal 2023. The company reported revenue of Rs 2,014 crore, up 20.86% from Rs 1,677 crore for the same period last year.
Net profit amounted to Rs 147.5 crore in the quarter ended June 30, 2022, down 20% from a profit of Rs 185.2 crore in the same quarter last year.
The company said that while it has taken price increases across its product portfolio along with cost reduction efforts, high raw material price inflation coupled with a negative impact on product mix due to the industry’s shift to a lower horsepower segment negatively impacted operating profit for the quarter ended June. In the quarter, pre-tax profit was also impacted due to lower other income due to temporary mark-to-market losses on treasury investments.
Nikhil Nanda, President and Managing Director of Escorts Kubota, said, “We are thrilled to be Escorts Kubota (EKL) now. During the first quarter of current taxation, the agricultural sector industry experienced a positive trend, after 3 quarters of decline. With the onset of the monsoon and record production of kharif crops, rural liquidity and farmers’ sentiments are expected to gradually improve. In our construction sector, we have outperformed the industry in our markets served and expect the growth momentum to continue with the government’s push for infrastructure development. We are seeing good order intake in our rail business and expect a strong fiscal year. With recent government measures, inflation may stabilize in the near term and operating leverage may further help to partially dilute the impact on margins in the coming quarters.