ESCORTS KUBOTA Q4 RESULTS: PROFIT GROWS 30% BUT REVENUE SLIPS, 180% DIVIDEND ANNOUNCED

Tractor manufacturing firm Escorts Kubota reported its results for the January to March 2024 period in which its net profit jumped 30.5% year-on-year to ₹242 crore, as compared to ₹185.5 crore in the same quarter of the previous fiscal.

The company’s revenue for the fourth quarter of 2023-24 financial year declined 4.6% YoY to ₹2,082.5 crore as against ₹2,183 crore in the March 2023 ended quarter.

On the operational front, Escorts Kubota saw its earnings before interest, taxes, depreciation, and amortization (EBITDA) rise 12.8% annually for the quarter under review to ₹266 crore. In the same quarter of the previous fiscal, the firm’s EBITDA had come in at ₹236 crore.

The firm’s margin increased to 12.7% from 10.8%, in line with brokerage firm Motilal Oswal’s estimates. However, when compared on a sequential basis, the margin has contracted as it was recorded at 13.5% for October to December 2023 quarter.

Alongside Q4 results, Escorts Kubota has also announced a dividend of ₹18 (180%) per fully paid-up equity share of ₹10 each for the financial year 2023-24 on all equity shares that will be held on the record date, which will be announced after approval of the shareholders at the ensuing Annual General Meeting (AGM).

The Q4 results come at a time when the quarter has been a very weak one for the tractor industry. Escorts Kubota saw 14% YoY decline in tractor sales in the last quarter of FY24. On the back of weak agriculture demand, the EBITDA margin was expected to contract, according to analysts.

Even as the stock has given a return of more than 66% in 2024 (year-to-date), following Q4 results, the stock was in red. It traded over 2% lower at ₹3,455.20 on BSE at 3:24 pm.

2024-05-09T10:03:06Z dg43tfdfdgfd