A sharp increase of 18% was seen in construction equipment sales, with 1,528 units sold by the Escorts Kubota brand. The brand also sold 24,765 tractors, a rise of 13%, during the year.
Escorts Kubota recently shared its financial results for FY2023, mainly impacted by rising commodity prices and other exceptional expenses. The fourth quarter has seen the revenue increase by 17%. This means a whopping Rs. 2,214 crore, whereas EBITDA of Rs 233 crore. This is a phenomenal improvement when you compare it to the previous year's Rs 248 crore. The net income, on the other hand turned over to be Rs 216 crore, as opposed to Rs 190 crore in the same period the year before.
The increase of 15.7% is shown in the sale of Escorts Kubota from the previous year; in the fiscal year, it made a combined profit of Rs 8,428 crore. During the last year, the net profit tax earned was Rs 735.6 crore; this year, it decreased to Rs 636 crore.
The profits were mainly affected by increased commodity prices and a Rs 97.2 crore loss due to a problem with Tadano Escorts India and Escorts Crop Solutions collaboration.
Throughout the fiscal year, the company achieved sales of 24,765 tractors, representing a 13% growth, and 1,528 units of construction equipment, reflecting an 18% increase.
Escorts Kubota's Chairman and Managing Director, Nikhil Nanda, commented, "Our efforts are aligned with our mid-term business plan for achieving the targeted growth in coming years. In agribusiness, retail sales were impacted due to unseasonal rainfall and crop damage in certain regions. However, with better crop prices, improved finance availability and good water reservoir levels, we expect demand momentum to continue across geographies in the coming quarters."
"We witnessed growth across the construction equipment portfolio towards the second half of this fiscal year across material handling, earth moving as well as road segment. The current market sentiments are positive, and demand is expected to remain buoyant due to the continuous focus of the government towards infrastructure projects."
Seiji Fukuoka, Deputy MD of Escorts Kubota, further mentioned, "Our efforts across domestic and export geographies are well mapped to leverage on opportunities across our core business verticals, and we are hopeful that with our strategic initiatives we will be able to achieve desired growth. Quality and performance will be our topmost priority and we will continue to focus on innovation and enhancing customer experience."