Escorts Kubota Q2 Results: Revenue growth of nearly 23% from last year, margin expands

Shares of Escorts Kubota Ltd. are trading with losses of over 1% on Tuesday, November 4, in response to their September quarter results.The company’s revenue increased by 22.6% from last year to ₹2,791.6 crore from ₹2,277 crore. Growth was led by the core Agri Machinery products business, where the revenue increased to ₹2,446 crore from ₹1,896.5 crore last year.

Agri Machinery’s growth was offset by the construction equipment business, where the revenue saw a marginal decline from the same quarter last year to ₹338.1 crore from ₹379.9 crore in the year-ago period.

The company’s operational performance was strong from last year, as its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew by 56.6% from last year to ₹359.5 crore.EBITDA margin also expanded by 280 basis points to 12.8% from 10% last year.

For the September quarter, Escorts Kubota’s tractor volumes grew by 30.3% from last year to 33,877 units. However, construction volumes declined by 17.8% to 1,146 units.

Shares of Escorts Kubota are currently trading 1.6% higher at ₹3,784.6. The stock had risen 7% in the last one month, extending its year-to-date advance to 15% before today’s trading session.