EKL Q3 2024 Profit Up 8.5% on Tractor Sales

Haryana - Escorts Kubota Limited., a tractor manufacturing company, reported an 8.5% rise in standalone net profit to $3,72,12,698 for Q3 December 2024, up from $3,42,99,699 a year earlier. The growth was driven by strong tractor sales, despite challenges in the construction equipment segment.

Escorts Kubota's revenue from continuing operations raise 8.5% year-on-year to $3,37,896, up from $3,11,473. Sequentially, revenue jumped 29.6% from $2,60,596 in the September quarter, showing strong business momentum.

The agricultural machinery segment was the main driver of growth for Escorts Kubota, with tractor sales rising 4.5% to 32,556 units compared to 31,155 units in the same quarter last year. This segment also showed strong sequential recovery, growing by 25.2% from 25,995 units in the previous quarter. Revenue from the agri machinery segment increased by 9.4% year-on-year, reflecting robust demand and a positive market outlook.

However, the EBIT margin for the segment declined to 10.4% from 12.1% in the same quarter last year, mainly due to cost pressures and competitive pricing. Despite this year-on-year contraction, the EBIT margin showed improvement from 9.1% in the previous quarter, indicating operational efficiency gains and better cost management. This performance underscores the agricultural machinery segment's pivotal role in driving the company's overall growth while navigating margin challenges.

The construction equipment division recorded a slight decline in sales volume, down 0.9% to 1,989 units. However, segment revenue increased by 4.1%, supported by improved pricing and product mix. Notably, the EBIT margin rose to 11%, up from 8.1% in the same quarter last year, reflecting better cost management and operational efficiency. Sequentially, the segment showed strong growth, with volumes increasing by 42.7% compared to the September quarter, highlighting a recovery in demand and enhanced market activity.