Escorts net up 33% - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Escorts net up 33%

Jun 17, 2000

Escorts Ltd, reported a net profit of Rs 1,124 m for FY2000, which is a growth of 33.5% YoY as compared to Rs 842 m reported in FY99. The FY2000 net includes a non-recurring income of Rs 730 m and an operational other income of Rs 225 m. Hence the company's net margins have improved from 7.6% in FY99 to 8.7% in FY2000. The operating margins however have declined to 17.8% in FY2000. Escorts Ltd manufactures tractors (84.5% of sales in FY99). The company’s existing products are the Escorts 24 HP-40 HP model, Farmtrac 45 HP-75 HP model and Powertrac (30-42 HP) model. Besides the company also has a presence in auto ancillaries, shock absorbers and railway ancillary products. The company reported sales of Rs 12.9 bn for FY2000.

(Rs m) FY1999 FY2000 Change
Sales 11,056 12,958 17.2%
Operating Profit (EBDIT) 1,996 2,303 15.4%
Operating Profit Margin (%) 18.0% 17.8%  
Interest 581 525 -9.6%
Profit before Tax 1,102 1,424 29.2%
Tax 260 300 15.4%
Profit after Tax/(Loss) 842 1,124 33.5%
Net profit margin (%) 7.6% 8.7%  
Earnings per share* 11.7 15.6  
(annualised)      

Due to drought conditions prevailing in Gujarat and Rajasthan, FY2001 has not started on a very good note, leading to a slack in demand for tractors. On the positive side however the expected normal monsoons could result in a pick in demand during the rest of the year.

Though Escorts continues to enjoy a strong position in the tractor market, however areas of concern have been its diversification into telecom, health, agri-business and infotech. As they are fairly new entrants to these sectors they will face competition in these areas from existing players. On the tractor industry front the concern has been the entry of global players like John Deere and New Holland, leading to higher competition.

Escorts on the current price of Rs 130 is trading at a price to earnings multiple of 8.3x FY2000 earnings.


Equitymaster requests your view! Post a comment on "Escorts net up 33%". Click here!

  

More Views on News

ESCORTS LIMITED Announces Quarterly Results (1QFY21); Net Profit Up 5.3% (Quarterly Result Update)

Aug 26, 2020 | Updated on Aug 26, 2020

For the quarter ended June 2020, ESCORTS LIMITED has posted a net profit of Rs 922 m (up 5.3% YoY). Sales on the other hand came in at Rs 11 bn (down 25.4% YoY). Read on for a complete analysis of ESCORTS LIMITED's quarterly results.

ESCORTS LIMITED Announces Quarterly Results (4QFY20); Net Profit Up 15.7% (Quarterly Result Update)

May 19, 2020 | Updated on May 19, 2020

For the quarter ended March 2020, ESCORTS LIMITED has posted a net profit of Rs 1 bn (up 15.7% YoY). Sales on the other hand came in at Rs 14 bn (down 15.4% YoY). Read on for a complete analysis of ESCORTS LIMITED's quarterly results.

ESCORTS LIMITED 2018-19 Annual Report Analysis (Annual Result Update)

Oct 18, 2019 | Updated on Oct 18, 2019

Here's an analysis of the annual report of ESCORTS LIMITED for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of ESCORTS LIMITED. Also includes updates on the valuation of ESCORTS LIMITED.

ESCORTS 2017-18 Annual Report Analysis (Annual Result Update)

Dec 31, 2018 | Updated on Dec 31, 2018

Here's an analysis of the annual report of ESCORTS for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of ESCORTS. Also includes updates on the valuation of ESCORTS.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why am I Recommending Caution? (Fast Profits Daily)

Sep 9, 2020

This is why I have changed my short-term view on the market.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

ESCORTS LIMITED SHARE PRICE


Sep 22, 2020 03:37 PM

TRACK ESCORTS LIMITED

  • Track your investment in ESCORTS LIMITED with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON ESCORTS LIMITED

ESCORTS LIMITED - HYUNDAI COMPARISON

COMPARE ESCORTS LIMITED WITH

MARKET STATS