ESCORTS · Capital Goods
Escorts Kubota Ltd. reported revenue of ₹2,277 cr for July to September 2024, −8.1% on the year and −11.5% on the quarter.
Operating profit (EBITDA) was ₹230 cr, a margin of 10.1%, −55 bps on the year and −214 bps on the quarter. It is the narrowest margin of the last 6 quarters (range 10.1% to 14.1%). Operating costs grew −7.5%, faster than revenue at −8.1%, so operating profit grew less than sales.
Net profit was ₹324 cr, +53.6% on the year and +7.3% on the quarter, with earnings per share of ₹28.98. Profit before other income, one-offs and tax fell 18.9%, so 72 points of the headline growth came from outside the core business. The tax rate was −8% against an average of 24% over the previous 5 quarters, which lifted profit this quarter.
A vehicle maker's revenue is volumes times average price, and its margin moves with steel, aluminium and rubber costs and with the share of exports and premium models. The quarterly statements do not carry volumes, realisation per vehicle and the export share; those come with the filing read.
On earnings per share of ₹107.72 over the last four quarters, the stock at ₹2,750.10 trades at 25.5 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow filed with this quarter, the auditor's review, segment results, one-off items line by line and what management said on the call.
Most of the profit growth did not come from the business. What lifted the gap?
Reported profit +53.6% on the year; profit before other income, exceptional items and tax −18.9%.
Source: Quarterly statements
A tax credit added to profit this quarter. Deferred tax recognised, or a reversal?
Profit before tax ₹299 cr; tax −₹23.9 cr, a credit.
Source: Quarterly statements
Other income is carrying a large and rising share of profit. Treasury gains, interest, or one-off?
Other income was 47% of profit before tax, against 32% a year earlier.
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
This quarter's filing carries a balance sheet and a cash flow statement. The cash, receivables and borrowing checks run once the filing read is in.
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹2,728 cr | ₹2,301 cr | ₹2,574 cr | ₹2,277 cr | ₹2,948 cr | ₹2,445 cr | ₹2,500 cr | ₹2,792 cr | ₹3,280 cr | ₹2,968 cr | ₹3,208 cr | ₹3,243 cr |
| YoY | — | — | +9% | −8% | +8% | +6% | −3% | +23% | +11% | +21% | +28% | +16% |
| EBITDA margin | 11.9% | 12.4% | 12.2% | 10.1% | 11.3% | 11.7% | 12.8% | 12.9% | 13.3% | 12.8% | 11.1% | 8.9% |
| Other income, % of PBT | 33% | 38% | 36% | 47% | 35% | 45% | 83% | 31% | 22% | 29% | 42% | 36% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 23% | 22% | 22% | −8% | 22% | 20% | 8% | 26% | 23% | 25% | 22% | 26% |
| Net profit | ₹299 cr | ₹270 cr | ₹302 cr | ₹324 cr | ₹321 cr | ₹318 cr | ₹1,397 cr | ₹318 cr | ₹358 cr | ₹321 cr | ₹386 cr | ₹250 cr |
| YoY | — | — | +4% | +54% | +7% | +18% | +363% | −2% | +12% | +1% | −72% | −21% |
| Core profit YoY | — | — | −15% | −19% | +4% | +3% | +5% | +84% | +36% | +39% | +10% | −27% |
| EPS | ₹27.01 | ₹24.43 | ₹27.30 | ₹28.98 | ₹28.66 | ₹28.46 | ₹124.88 | ₹28.92 | ₹32.03 | ₹28.65 | ₹35.08 | ₹22.74 |
| Flags | 1 | 1 | 2 | 3 | ✓ | ✓ | 3 | ✓ | ✓ | ✓ | ✓ | 2 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Escorts Kubota Ltd. reported revenue of ₹2,277 cr (−8.1% on the year) and net profit of ₹324 cr (+53.6% on the year) for July to September 2024.
Profit before other income, exceptional items and tax moved −18.9% on the year, against +53.6% for reported profit.
3 checks raised a question: Most of the profit growth did not come from the business. What lifted the gap?
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