Escorts Ltd has reported a 83% fall in net profit to Rs 41 m for the 2QFY01. The company's sales too declined by 11% during this period to Rs 2.9 bn for the 2QFY01.
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Diluted number of shares
Diluted Earnings per share*
Price to earnings (x)
The main reason for this is a slowdown in the tractor industry. Tractors account for 85% of the company's revenues. Overall tractor industry sales fell due to the drought conditions that prevailed in Rajasthan and Gujarat.
In the first four months of the current financial year the tractor industry declined by 17.4% YoY, while Escorts volumes dropped by a higher 25.8% during this period.
On the current price of Rs 74, Escorts is trading at 4.8x FY00 EPS of Rs 15.6
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