Escorts Kubota reports jump net profit for Apr-Jun
This story was originally published at 17:44 IST on 4 August 2025
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By Reshma Ravi
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--Escorts Kubota Apr-Jun net profit INR 3.73 bln
--Analysts saw Escorts Kubota Apr-Jun net profit at INR 2.88 bln
--Escorts Kubota Apr-Jun net profit INR 3.73 bln vs INR 2.66 bln year ago
--Escorts Kubota Apr-Jun revenue INR 24.83 bln vs INR 25.56 bln year ago
--Escorts Kubota Q1 agri machinery pdts sales INR 21.81 bln vs INR 21.72 bln
--Escorts Kubota Q1 construction equipment sales INR 3.01 bln vs INR 3.81 bln
--Escorts Kubota Apr-Jun EBITDA INR 3.25 bln vs INR 3.17 bln year ago
--Escorts Kubota Apr-Jun EBITDA margin 13.1% vs 12.4% year ago
--Escorts Kubota Apr-Jun agri machinery EBIT margin 12.6%, down 6 bps on yr
--Escorts Kubota Apr-Jun tractors segment capacity utilisation around 70%
--Escorts Kubota Apr-Jun construction ops EBIT margin 5.8%, dn 449 bps on yr
--Escorts Kubota Q1 contruction equipment ops capacity utilisation around 30%
MUMBAI – Escorts Kubota Ltd. reported a sharp jump in its net profit for the June quarter as total expenses fell more than the fall in revenue. The company beat Street expectations on net profit but missed the expectation on revenue. The company's bottom line rose the highest in at least 39 quarters even though revenue fell from the year-ago quarter.
The company reported a net profit of INR 3.73 billion for the June quarter from its continuing operations, up sharply from INR 2.66 billion in the year-ago quarter. This does not include the profit for discontinued operations, which is the railway division that the company sold to Sona BLW Precision Forgings Ltd. in the last financial year. Including discontinued operations, the total net profit for the latest quarter was INR 14 billion, up 361% on year.
The company reported revenue from operations of INR 24.83 billion, down nearly 3% on year and lower than analysts' expectation of INR 25.61 billion. Other income rose 52% to INR 1.56 billion, which helped limit the fall in total income to just 1% despite a 3% fall in revenue from operations.
The total expenditure of the company for the quarter fell to INR 22.21 billion, down almost 4% from INR 23.09 billion. This fall was driven by a drop in the value of inventory which was negative INR 683 million for the latest quarter as opposed to INR 703 million in the year-ago quarter. A fall of INR 484 million in purchase of stock in trade also helped contain the increase in total expenses even though raw material costs rose 8% to INR 12.22 billion. While employee costs rose 6% to INR 1.83 billion, other expenses were flat at INR 2.58 billion.
The company's agri machinery products segment reported revenue of INR 21.81 billion, down marginally from the year-ago quarter. This segment accounted for 88% of the company's total revenue in Apr-Jun.
The company reported earnings before interest, tax, depreciation and amortisation of INR 3.25 billion, up 2.6% on year.
The effective date for the transfer of the company's railway equipments business to Sona BLW was Jun. 1, the company siad in a press release. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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