Tractor manufacturer Escorts Kubota is reportedly considering the sale of its railway business, sources with knowledge of the matter told CNBC-TV18.
Sources have informed CNBC-TV18 that the company is engaged in discussions with investors regarding the potential sale of its railway division.
At 12:38 pm, Escorts Kubota was trading at Rs 3,019, down 0.4 percent from the previous close on the NSE. Since the start of the year, the tractor manufacturer has given a return of 41 percent.
In the financial year 2023, Escorts Kubota witnessed a robust 33% year-on-year growth in railway business revenue to reach Rs 842 crore.
With a remarkable threefold expansion over the past decade, the railway business now constitutes 10 percent of Escorts Kubota's total revenue.
In response to queries from CNBC-TV18, Escorts Kubota declined to confirm or comment on the railway business sale plan but affirmed that it keeps exploring options for various businesses.
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