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Escorts Q4 results | Yadnya Investment Academy

Escorts Q4 results | Yadnya Investment Academy

Published on 17 May 2021|
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Standalone Q4FY21 results

  • 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

  • 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

  • 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 Equipments sales were up by 24.8% from Q4FY20 numbers.
  • The company had advantage of operating leverage in construction and railway equipment divisions which led to positive results.
  • The company was also affected by adverse rise in commodity prices.
  • There were some positive developments in Construction Equipment division & Railway Equipment division in Q4FY21. The company expects to see impact of 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

  • 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 decline of (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 Agri Machinery segment stood at 1,06,741 units as compared to FY20 volumes of 86,018 unit, 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 highest ever EBIT margins at 18.2% in FY21 as compared to 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 Construction Equipment division stood at 3,913 units in FY21 as 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 product 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 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 core customer base of the company.
  • Escort and its sector proved resilient in the first wave, company hopes to come out of the second wave in similar way.
  • Agri machinery continued its good performance in Q4FY21 due to positive macro factors and pent up demand from Q1FY21 and Q2FY21.
  • The company registered higher market share in Q4FY21 than company’s average share in FY21.
  • Subdued demand and lockdowns are affecting the supply chain as the company believes this problems are temporary and will be over soon.

 

Dividend

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