Escorts Q1 net profit jumps 9 pct

The company had posted a net profit of Rs 23.4 crore in the corresponding period previous fiscal.

Tractor maker Escorts reported 8.55 per cent increase in its net profit for the quarter ended December 31,2010,at Rs 25.4 crore on account of robust demand – this is Escorts Q1 result as it does not follow the usual India Inc financial year reporting of results.

The company had posted a net profit of Rs 23.4 crore in the corresponding period previous fiscal,Escorts said in a statement.

The net sales during the quarter grew by 37.90 per cent to Rs 827.7 crore from Rs 600.2 crore in the year-ago period,it added.

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During the three-month period,Escorts sold 16,333 tractors as against 13,561 units in the same period last fiscal,an increase of 20.44 per cent.

“Escorts’ first quarter results of fiscal 2010-11 reflects a profitable quarter,with increase in sales

performance in the tractor segment. The industry is faced with rising inflation,which will be a test of our managerial initiatives to neutralise increasing costs,” Escorts Chairman and Managing Director Rajan Nanda said.

Escorts Joint Managing Director Nikhil Nanda said the company’s construction and the railways businesses are expecting growth in this year and several product initiatives are in the pipeline.

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“We look at 2011 as a year of new business opportunities,where new initiatives will strengthen our profitability and growth in all segments,” he added.

The shares of the company today closed 4.05 per cent down at Rs 131.55 on the Bombay Stock Exchange.