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Agri-machinery segment player Escorts’ Q4 net profit stood at Rs 18.9 crore against Rs 8.2 crore reported a year earlier. It reported net sales of Rs 819 crore in Q4 compared to Rs 763 crore (YoY).
"On a standalone basis, while the industry has been quite stagnant we have improved our EBITDA margins, because sold consciously and strategically more premium products with greater margins," Rajan Nanda, chairman and managing director, Escorts said in an interview to CNBC-TV18.
Escorts expects its farm machinery business to perform better going ahead. "We are going to get much stronger on our EBITDA from farm machinery. Our growth rate is going to be fairly good," he added.
The company aims to improve its market share from current 11 percent to 13-14 percent in the future.
Below is the edited transcript of Rajan Nanda's interview with CNBC-TV18.
Q: Give us the key highlights with regards to the consolidated performance of the company as well as the standalone numbers?
A: On a standalone basis, while the industry has been quite stagnant we have improved our EBITDA margins, because sold consciously and strategically more premium products with greater margins.
At the same time, we are doing product up gradation on a balanced rate, so we are growing on market share. But considering it was a non-growing market, a flat market, we are better prepared to grow our market share based on the preparations we made in product and in markets.
Q: The agri machinery division of yours has also given a big boost to the numbers. What kind of contribution have you seen there and what are the plans going forward?
A: We are going to get much stronger on our EBITDA on farm machinery and our growth rate is going to be fairly good. This is because we have now got the product mix which has rich revenue than in the past. So, agri division is our locomotive business. We have built our company’s business returns and stakeholders’ dividends from the earnings of this business.
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