(Reuters) – Indian tractor maker Escorts Kubota reported an 7.7% rise in third-quarter profit on Monday as demand rose, boosted by the festive season and above-normal monsoon.
The company’s standalone net profit from continuing operations grew to 2.9 billion rupees ($33.17 million) in the three months ended December 31, 2024, from 2.7 billion rupees a year earlier.
Revenue from operations climbed 8.5% to 29.35 billion rupees.
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KEY CONTEXT
Escorts sold 4.5% more tractors in the reported quarter compared to last year, driven by above-normal monsoon and higher water reservoir levels, which resulted in increased agricultural activity, and various festivals at the beginning of the quarter.
The sale of big-ticket items increases during festivals, seen as auspicious and prosperous times.
The company transferred its railway equipment division to Sona BLW Precision Forgings for 16 billion rupees in the third quarter to focus on its core businesses – agriculture and construction equipment.
Cost of materials consumed, which constitutes a major chunk of the total expenses, jumped 11.5%, pushing total spends up by 8.8%.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/ Revenue Profit Mean No. of Stock to Div
TDA Sales growth (%) growth rating* analyst price yield
(%) s target** (%)
Escorts Kubota 29.39 22.26 NULL 9.27 14.57 Hold 8 0.94 0.55
Mahindra and Mahindra 27.50 25.36 NULL 13.10 13.67 Buy 30 0.93 0.66
Tata Motors 9.37 4.84 0.59 4.37 3.58 Buy 29 0.82 0.42
Eicher Motors 29.34 26.40 7.24 13.78 13.45 Buy 27 1.04 0.95
* The mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
OCTOBER-DECEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.4670 Indian rupees
($1 = 87.4340 Indian rupees)
(Reporting by Meenakshi Maidas in Bengaluru; Editing by Sumana Nandy)
