Escorts Kubota (ESCORTS) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 consolidated revenue rose to ₹2,948.02 crore, up 8.5% year-on-year, with net profit from continuing operations up 7.7% and total net profit at ₹320.63 crore.

• The company completed the amalgamation of two joint ventures, restating prior period results and increasing share capital.

• Profitability of the Railway Equipment Business is now reported as discontinued operations, with prior periods restated.

• Board approved sale of Railway Equipment Division to Sona BLW Precision Forgings for ₹1,600 crore and sale of land for ₹110 crore.

• Interim dividend of ₹10 per equity share declared.

Financial highlights

• Standalone EBITDA margin at 11.4% and consolidated EBITDA margin at 11.3% for Q3 FY25.

• EPS for Q3 FY25: ₹29.39 (standalone), ₹29.16 (consolidated), up from previous year.

• Net profit including discontinued operations rose 8.5% year-on-year to ₹323.2 crore.

• 9MFY25 consolidated revenue reached ₹7,799.00 crore, with net profit at ₹946.53 crore.

• Finance costs decreased to ₹3.54 crore in Q3 FY25 from ₹11.16 crore in Q3 FY24.

Outlook and guidance

• Domestic tractor industry expected to grow 6%-7% for FY25; Q4 projected to see 14%-15% growth.

• Export business expected to see 20%-25% growth in FY26, driven by Kubota network access and new product launches in Europe.

• Construction Equipment segment anticipates a flattish FY26 due to cost increases from new emission norms.

• Management highlights margin dilution due to merger and inflationary pressures.

• Continued growth in agri machinery and construction equipment segments expected, supported by amalgamation.