Last Updated on November 8, 2023 by BFSLTeam BFSLTeam
Table of Content
Key Highlights
- Escorts Kubota Limited (EKL), a leading engineering conglomerate with a history of over seven decades, steering India’s socio-economic growth through pioneering contributions in critical industrial sectors, has reported its unaudited consolidated financial results for the 2nd Quarter and Half Year ended 30th September 2023.
- The company has recorded a 9% year-on-year (YoY) decline in consolidated net profit to ₹1,549.87 crore, mainly due to higher finance cost and tax expenses, for the quarter ended 30th September 2023.
- The company has also reported a 16% YoY growth in consolidated revenue from operations to ₹4,714.28 crore, driven by higher lease rentals and interest income, for the quarter ended 30th September 2023.
- The company has achieved robust growth in sanctions and disbursements, with a 23% YoY increase in sanctions to ₹1,04,366 crore and a 133% YoY increase in disbursements to ₹41,598 crore, for the half year ended 30th September 2023.
- The company has maintained a comfortable capital adequacy ratio of 25.06% as of 30 September 2023, well above the regulatory requirement of 15%, indicating ample opportunity to support future growth.
Additional Read: Q2 Results Dashboard
Financial Performance
The following table summarises the financial performance of EKL for the quarter and half year ended 30th September 2023, compared to the corresponding period in the previous year:
| Particulars | Q2 FY24 | Q2 FY23 | Growth (%) | H1 FY24 | H1 FY23 | Growth (%) |
| Revenue from Operations (₹ crore) | 4,714.28 | 4,062.87 | 16 | 8,714.28 | 7,062.87 | 23.4 |
| Finance Cost (₹ crore) | 3,164.41 | 2,348.59 | 34.7 | 5,964.41 | 4,348.59 | 37.1 |
| Profit Before Tax (₹ crore) | 1,549.87 | 1,714.28 | -9.6 | 2,749.87 | 2,714.28 | 1.3 |
| Tax Expense (₹ crore) | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Profit (₹ crore) | 1,549.87 | 1,714.28 | -9.6 | 2,749.87 | 2,714.28 | 1.3 |
| Earnings Per Share (₹) | 1.55 | 1.71 | -9.6 | 2.75 | 2.71 | 1.3 |
Also Read: Escorts Kubota Share Price
Operational Highlights
- The company has sanctioned loans worth ₹1,04,366 crore in H1 FY24, up 23% YoY, to various entities of the Indian Railways, including the Ministry of Railways, zonal railways, production units, and other railway organisations.
- The company has disbursed loans worth ₹41,598 crore in H1 FY24, up 133% YoY, to various entities of the Indian Railways, reflecting the revival of demand and execution in the railway sector post the pandemic-induced slowdown.
- The company has increased its interest income on loan assets to ₹11,213 crore in H1 FY24, up 18% YoY, due to higher disbursements and lending rates.
- The company has effectively managed its finance cost, which increased by 37.1% YoY to ₹5,964 crore in H1 FY24, due to higher borrowings and interest rates.
- The company has diversified its borrowing sources and raised funds from various domestic and international markets, including bonds, term loans, commercial papers, external commercial borrowings, and masala bonds, at competitive rates and tenures.
Capital Adequacy
- The company has maintained a comfortable capital adequacy ratio of 25.06% as of 30 September 2023, well above the regulatory requirement of 15%, indicating ample opportunity to support future growth.
- The company has a strong net worth of ₹11,062.87 crore as of 30 September 2023, an increase of 13.4% YoY, driven by growth in profits and retained earnings.
- The company has a low leverage ratio of 8.06 times as of 30th September 2023, compared to 8.22 times as of 31st March 2023 and 8.54 times as of 30th September 2022, reflecting its prudent capital management.
Dividend
- The company has not declared any dividend for the quarter and half year ended 30th September 2023.
- The company has a consistent dividend payout history, with a dividend payout ratio of 30% for the financial year 2022-23 and 30% for the financial year 2021-22.
About the Company
EKL is a ‘Navratna’ company under the administrative control of the Ministry of Railways, Government of India, and engaged in financing and leasing of rolling stock and infrastructure assets for the Indian Railways. The company is the sole financier of the Indian Railways, and provides funds for acquiring locomotives, coaches, wagons, electric multiple units, diesel multiple units, and other railway assets. The company is also involved in leasing railway assets, consultancy, advisory, and other value-added services to the railway sector entities. The company is the nodal agency for implementing various flagship schemes of the Government of India, such as the Dedicated Freight Corridor, High-Speed Rail Corridor, and Bullet Train Project.
Source –
https://www.bseindia.com/xml-data/corpfiling/AttachLive/d422eb33-6ec0-4e1f-9836-9f2b54db21db.pdf&ved=2ahUKEwiC1J6QwamCAxX4TGwGHY4xCTcQFnoECA4QAQ&usg=AOvVaw1-qO1YrJVIHr7FU6w-SVdZ
