Escorts Q4 net profit dips 60% to Rs 13 crore

Tractor manufacturer Escorts on Thursday reported 59.84 percent decline in its net profit at Rs 12.76 crore for the fourth quarter ended March 31, 2015, hit by weak demand due to adverse weather conditions. The company had reported a net profit of Rs 31.78 crore during the same period of previous fiscal. 

Net sales of the company also declined to Rs 811.22 crore during the fourth quarter, as against Rs 977.17 crore during the same period of 2013-14 fiscal, Escorts Ltd said in a filing to the BSE.

For the year ended March 31, 2015, the company posted a net profit of Rs 74.71 crore, compared to Rs 179.27 crore during previous year.Net sales of the company also declined to Rs 3,962.27 crore during the fiscal ended March 31, 2015, compared to Rs 4,244.47 crore in the previous fiscal."The tractor industry has now been impacted for three consecutive quarters by adverse weather conditions. Poor and delayed monsoons have been followed by unseasonal rain that has affected standing crops," Escorts Chairman Rajan Nanda said.

It is important for the government to find ways to protect farmers through a strong and effective crop insurance regime as well as further easing of loans for seeds and inputs, he added.