Escorts Kubota Q3 net profit rises 8% to Rs 290 crore, firm declares Rs 10 dividend

Escorts Kubota Q3 net profit rises 8% to Rs 290 crore, firm declares Rs 10 dividend

Tractor maker Escorts Kubota reported 8% rise in third-quarter profit on February 10 as demand rose, boosted by the festive season and above-normal monsoon.

The company's standalone net profit from continuing operations grew to Rs 290 crore in the three months ended December 31, 2024, from Rs 270 crore a year earlier.

Revenue from operations climbed 8.5% to Rs 2,935 crore.

Escorts sold 4.5% more tractors in the reported quarter compared to last year, driven by above-normal monsoon and higher water reservoir levels, which resulted in increased agricultural activity, and various festivals at the beginning of the quarter.

The sale of big-ticket items increases during festivals, seen as auspicious and prosperous times.

The company transferred its railway equipment division to Sona BLW Precision Forgings for Rs 1,600 crore in the third quarter to focus on its core businesses - agriculture and construction equipment.

Cost of materials consumed, which constitutes a major chunk of the total expenses, jumped 11.5%, pushing total spends up by 8.8%.

The company's board declared interim dividend of Rs 10 per share.

On February 10, Escorts Kubota's shares on BSE closed nearly 1% lower at Rs 3,300 apiece.