Escorts Q4 results

Published on 30 June 2021
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Domestic market share in Q4FY21 was at 12.9%, which reduced (13 bps) from 13.1% market share in Q4FY20.
Revenue from operations in Q4FY21 stood at Rs. 2210.5 crore as compared to Rs. 1380.7 crore Q4FY20, a growth of 60.1%.
EBITDA stood at Rs. 344.7 crore in Q4FY21 as compared to Rs. 194.4 crore in Q4FY20, a growth of 77.3%.
EBITDA margin stood at 15.6% in Q4FY21 as compared to 14.1% in Q4FY20.
PAT grew 93.2% to Rs. 271.3 crore in Q4FY21 from Rs. 140.4 crore in Q4FY20.
PAT margin increased to 12.3% in Q4FY21 from 10.2% in Q4FY20.

Consolidated Q4FY21 results: Escorts Share Price

Revenue from operations in Q4FY21 stood at Rs. 2228.8 crore as compared to Rs. 1385.7 crore Q4FY20, a growth of 60.8%.
EBITDA stood at Rs. 343.8 crore and compared to Rs. 182.1 crore in Q4FY20, a growth of 88.8%.
EBITDA margin stood at 15.4% as compared to 13.1% in Q4FY20.
PBT grew by 93.2% to Rs. 346 crore in Q4FY21 from Rs. 179.2 crore in Q4FY20.
PAT grew 107.8% to Rs. 265.4 crore in Q4FY21 from Rs. 127.7 crore in Q4FY20.

Q4FY21 Highlights: Escorts Finance Share Price

The tractor volume stood at 32,588 units which is an increase of 62.1% in Q4FY20. Construction division volumes increased by 62.7% to 1,604 units as compared to Q4FY20. Railway Equipment sales were up by 24.8% from Q4FY20 numbers.
The company had the advantage of operating leverage in construction and railway equipment divisions, leading to positive results.
The company was also affected by the adverse rise in commodity prices.
There were some positive developments in the Construction Equipment division & Railway Equipment division in Q4FY21. However, the company expects to see the impact of the current environment in upcoming quarters.

Standalone FY21 results

Domestic market share in FY21 was at 11.3%, which reduced (28 bps) from 11.6% market share in FY20.
Revenue from operations in FY21 stood at Rs. 6929.3 crore as compared to Rs. 5761 crore FY20, a growth of 20.3%.
EBITDA stood at Rs. 1129.3 crore in FY21 and compared to Rs. 675.8 crore in FY20, a growth of 67.1%.
EBITDA margin stood at 16.3% in FY21 as compared to 11.7% in FY20.
PAT grew 80.8% to Rs. 874.1 crore in FY21 from Rs. 485.5 crore in FY20.
PAT margin increased to 12.6% in FY21 from 8.2% in FY20.

Consolidated FY21 results

Revenue from operations in FY21 stood at Rs. 7014.4 crore as compared to 5810.1 Q4FY20, a growth of 20.7%.
EBITDA stood at Rs. 1126.8 crore in FY21 as compared to Rs. 662.4 crore in FY20, a growth of 70.1%.
EBITDA margin stood at 16.1% in FY21 as compared to 11.4% in FY20.
PBT grew by 84.7% to Rs. 1154.8 crore in FY21 from Rs. 625.3 crore in FY20.
PAT grew 84.8% to Rs. 871.6 crore in FY21 from Rs. 471.7 crore in FY20.

FY21 highlights: Escorts Share Price History

Tractor volume stood at 1,06,741. A growth of 24.1% from FY20.
Escort Construction equipment business posted volumes of 3,913, which is declining (3.2) from FY20.
Railway equipment division sales stood at Rs. 479 crore, which is a small increase of 0.4% from FY20 numbers.

Escorts Agri Machinery

FY21 volume for the Agri Machinery segment stood at 1,06,741 units compared to FY20 volumes of 86,018 units, a growth of 24%.
FY21 revenue: Rs. 5,667.3 crore. A growth of 27% as compared to FY20 revenue: Rs. 4437.6 crore.
The growth in this segment was due to operating leverage, favourable product mix & cost efficiencies.
The segment also posted the highest ever EBIT margins at 18.2% in FY21 compared to the FY20 EBIT margin of 13%.
Q4FY21 volumes stood at 32,588 units as compared to 20,108 units in Q4FY20.
Q4FY21 revenue for Agri Machinery stood at Rs. 1738.8 crore, a growth of 64.3% from Q4FY20 revenue of Rs. 1058.4 crore.

Escorts Construction Equipment

Volume for the Construction Equipment division stood at 3,913 units in FY21 compared to 4,402 units in FY20.
Revenue for the division in FY21 stood at Rs. 776.1 crore as compared to Rs. 839.8 crore in FY20. EBIT margin for FY21 is 3.6%.
Q4FY21 volumes stood at 1,604 units, up 62.7% in Q4FY20 volumes of 986 units.
Revenue in Q4FY21 stood at Rs. 322 crore, which is a growth of 53.3% from revenue of Rs. 210 crore in Q4FY20.
Q4FY21 EBIT margin stood at 7.3% compared to Q4FY20 EBIT margin of 4.3%.

Railway Equipment Division

FY21 revenue for railway division stood at Rs. 479 crore compared to FY20 revenue of Rs. 477 crores.
Sales from new products grew by 52.9% in FY20-21.
EBIT margin for FY21 is 16.0% as compared to FY20 EBIT margin of 18%.
The company stated that Indian Railways are not running its full operations of passenger trains.
Q4FY21 revenue stood at Rs. 146.5 crore, up 35.6% as compared to Q4FY20 revenue of Rs. 108 crore.
EBIT margin in Q4FY21 was 19.1% compared to Q4FY20 margin of 14.1%.
Order book stood at more than Rs. 340 crore at the end of Mar 31. This order book will get executed in 6-8 months.

Management commentary

The second wave of COVID has affected the rural geographies, which is the company’s core customer base.
Escort and its sector proved resilient in the first wave; the company hopes to come out of the second wave similarly.
Agri machinery continued its good performance in Q4FY21 due to positive macro factors and pent up demand from Q1FY21 and Q2FY21.
The company registered a higher market share in Q4FY21 than the company’s average share in FY21.
Subdued demand and lockdowns affect the supply chain as the company believes these problems are temporary and will be over soon.

Dividend: Escorts dividend

The Board of Directors has recommended a dividend of Rs. 7.5 per share for FY21.

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