Escorts Limited on Tuesday announced net profit of Rs 9.68 crore for the second quarter ended March 31, 2008, a 44.26 per cent increase over the corresponding period last year driven by operational efficiencies.
The company had registered a net profit of Rs 6.71 crore in the second quarter in the last financial year, the company said in a release.
"We have made significant gains in the past quarter, because of improved operational efficiencies. We have significantly improved our cost performance and that has aided the bottomline growth. We have improved upon the previous quarter sales, recording a significant 23 per cent growth in the second quarter as compared to the first quarter of the current fiscal," Escorts Chairman and Managing Director Rajan Nanda said in a release.
The total expenditure fell sharply to Rs 485.48 crore for the quarter as opposed to Rs 529.04 crore in the corresponding quarter last year, as per unaudited financial results for the quarter ended March 31, 2008. The profit for six months was up to Rs 3.75 crore, from Rs 3.67 crore in the year-ago period.
Total sales of the company dropped for the half year to Rs 963.45 crore this year, from Rs 1091.46 crore in the previous year.
However, sales in the quarter ended March 31, 2008 was at Rs 531.47 crore as against the first quarter of the current fiscal when total sales had stood at Rs 431.98 crore.
Nanda said, the company aims to grow business volumes for tractors by about 20-25 per cent over the next two years.
According to Joint Managing Director Nikhil Nanda the company was poised well to ride the growth sectors it has aligned its businesses.
In afternoon trade, the company's shares were trading at Rs 104.50, up 5.4 per cent on BSE.