Escorts Q1 net up 6% to Rs 36 crore

Tractor maker Escorts on Thursday posted 6.33 percent rise in net profit to Rs 36.27 crore for the first quarter ended June 30, 2015-16. The company had posted net profit of Rs 34.11 crore during the same period of previous fiscal. Net sales of the company declined to Rs 973.22 crore during the April-June quarter, compared to Rs 1,122.10 crore in the same period of 2014-15, Escorts Ltd said in a filing to the BSE.

"The tractor industry has shown some recovery since the last quarter and the growth in volumes reflect that change in trend," Escorts Ltd Chairman Rajan Nanda said. Escorts Managing Director Nikhil Nanda said the fact the company bettered its comparable profits despite the negative market conditions is a result of a lot of efforts going into driving long term profitability. "The increase in profits is driven by cost compression, change in product mix, better inventory management and measures taken to curtail material cost," he added.