Escorts ploughs healthy Q4 profit as tractor sales ease pain in other segments
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New Delhi, May 17 -- Amid the gloom of virus-led disruptions, Escorts Ltd's March quarter (Q4FY20) results brought some cheer for investors. The stock rose 3.6% on Friday as the company's agri-machinery segment lifted overall profitability.
For the quarter, earnings before interest, tax, depreciation and amortization (Ebitda) margin zoomed by 250 basis points (bps) year-on-year (y-o-y) to 14.1%. It also beat Bloomberg's consensus estimate of 10.5% by a wide margin.
One basis point is one hundredth of a percentage point.
Undoubtedly, a good rabi crop and harvest supported the quarter's performance. Indeed, production halt and reduced dealerships due to the lockdown led to a 20% y-o-y drop in agri-machinery sales. However, realizations r...
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