TAD News Desk, New Delhi: The second fiscal quarter that ended on 30 September 2020 recorded voluminous sale of agri-machinery tractor at 24,441 units, 23.8 percent higher than that of the last year’s corresponding quarter sales.
32.8 percent was the increase in revenue generated through the segment at INR 1,322.2 crore from INR 995.6 crore. EBIT margin in this financial quarter was recorded highest ever with 20 percent from previous year’s 10.3 percent. The reason behind this favourable outcome was – various cost reduction initiatives, operating leverage and, favourable product mix.
Nikhil Nanda, MD and Chairman of the group spoke happily on the results,
“The Agri sector has been on an unprecedented boom. Maintaining the highest safety measures and working closely with our partners to work around supply chain challenges, the demand for our tractors has so far outpaced our supplies. We think the momentum in the Agri sector will continue supported by positive macro-economic factors. We also hope that supply chain challenges would subside after a month or so.”
Nanda further added,
“We have also started witnessing some positive development in the construction and railway equipment space now and hopefully we will see a full recovery soon. In all our business segments, we are optimistic for the coming quarters.”
Comparing the first half of the current and previous financial year, a 4.4 percent increase in sale of tractor volumes is observed at 42,591 units this year compared to 40,801 units previous year. Segmental revenue also recorded a 9 percent rise at 2,275.7 crores from 2,087.7 crores.
The EBIT margin was up at 17.7 percent from 10.6 percent previous year by 708bps.
This second quarter of the current financial year has observed the highest ever quarterly profit at 229.9 crores compared to 104.6 crores last year. Revenues in this quarter have seen an increase of 23.9 percent as compared to previous corresponding fiscal year at 1639.7 crores from 1323.9 crores.
The company released a statement which said financials of these first six months are not comparable to previous years due to the unprecedented outbreak of COVID-pandemic situation, as they do not represent normal operations.
Source – Agriculture Times
