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EBITDA for the quarter ended June 2021, at Rs 233.2 crore was increased by 95 per cent, compared to Rs 119.6 crore in the corresponding quarter ending June 2020. EBITDA margin rose 269 basis points to 14 per cent during the quarter under review. During the quarter, Escorts' tractor sales increased 42.9 per cent to 25,935 units, compared to 18,150 tractors, in the corresponding period last fiscal. Segment revenue grew by 48 per cent to Rs 1,411.4 crore, compared to Rs 953.5 crore in the same period last fiscal.

In a regulatory filing, Escorts said that this quarter, despite commodity cost inflation, with several cost reduction initiatives and operating leverage, EBIT margins improved by 112 bps to 15.6 per cent in the quarter ended June 2021 compared to 14.5 per cent in the same period last fiscal.

Escorts sold 606 units of construction equipment during the June quarter this year, which surged 159 per cent compared to 234 machines in the corresponding period last year. Segment revenue was increased 168.3 per cent to Rs 40.8 crore in the quarter ending June 2021 compared to Rs 52.5 crore in the same period last fiscal. EBIT margin for the first quarter ended June 2021 was negative 2.3 per cent compared to negative 32.0 per cent in the same period last fiscal.

The company told the media that moving forward with enhanced funding availability and government thrust on infrastructure projects, demand is likely to reach its full potential from October 2021 onwards post the monsoon season.

In the railway equipment division, segment revenue for the first quarter rose by 117.5 per cent at Rs 119.4 crore in the quarter ending June 2021 compared to Rs 54.9 crore in the same quarter. Sales from new products more than doubled and now contribute 63 per cent to total division sales compared to 43 per cent last year corresponding quarter.

The company told the media that Indian Railways is not running its entire operations yet, due to the unprecedented Covid-19 pandemic and have reduced their annual production rate, impacting fresh order tendering and order inflow. The order book for the division, at the end of June 2021, was above Rs 300 crore. Moving forward with government safety measures and vaccination drives picking up at a fast pace, they expect the tendering process to get back to the pre-Covid level within the current fiscal.

Nikhil Nanda, Chairman and Managing Director, Escorts, told the media that unlocking has assisted in strengthening demand, facilitating transport, logistics and enhanced supply chain across the farming community to form a positive industry momentum. They hope that with sustained government efforts, the tractor, agri equipment industry, and construction equipment industry will be back on a growth track.