Escort reports 33 per cent PAT growth, stock surges

In the second quarter of FY19, Escort reported 15.4 per cent growth in its revenue to Rs. 1,398.4 crore from the same quarter of last fiscal. This was led by healthy volume growth of 37 per cent yoy in the construction segment. Also, 45 per cent yoy growth in railway division aided in revenue growth.

EBITDA for the quarter grew by almost 12 per cent yoy to Rs. 157.5 crore. EBITDA margin during this period was at 11.3 per cent. Cost of material during the quarter was higher in proportion to revenue.

Net profit in the quarter surged 33 per cent yoy to Rs. 102.7 crore. This was due to a sharp increase in other income to Rs. 22.12 crore from Rs. 8.14 crore in Q2FY18.

Railway division’s order book in Q2FY19 was more than Rs. 400 crore.

Meanwhile, with this good set of numbers, the stock of Escort spikes to an intraday high of Rs. 629.6 apiece. The stock closed for the day at Rs. 625.9 apiece, up by almost 3.60 per cent from its previous close.