PLOUGHING SUCCESS - ESCORTS LTD
Article Abstract:
Escorts Ltd has been able to maintain its net profit at 1996-97 levels at Rs129.84 crore due to its restructuring programme. During 1997-98, the operating profit margin grew to 12.36 percent (10.66 percent in 1996-97). It exported 919 tractors and sold 48,330 tractors in the domestic market (43,448 tractors). Escorts has introduced an upgraded tractor model in the 22-40 horse power segment. It proposes to foray into the 60-80 HP segment. During 1998-99, it plans to export 3,500 tractors. It intends to invest Rs240 crore on modernisation and expansion of its agri-business. It proposes to reduce its equity to half by offering fully paid up preference shares of Rs90 for every share cancelled, at a coupon rate of 12 percent. (ag) ------------------------------------------------------------ Financial Performance of Escorts Ltd (Rs in crore) ------------------------------------------------------------ Particulars 1997-98 1996-97 ------------------------------------------------------------ Gross Sales: ------------------------------------------------------------ Existing Business 1275.58 112.35 ------------------------------------------------------------ Divested Business NIL 397.85 ------------------------------------------------------------ Other Income: ------------------------------------------------------------ Operational 65.87 75.43 ------------------------------------------------------------ Non recurring 72.69 81.83 ------------------------------------------------------------ Interest 44.04 52.55 ------------------------------------------------------------ Depreciation 31.13 30.08 ------------------------------------------------------------ Tax 33.60 40.00 ------------------------------------------------------------ Net Profit 129.84 127.22 ------------------------------------------------------------
Comment:
Is able to maintain net profit at 1996-97 levels at Rs129.84 crore due to restructuring program
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
FIs BLOCK ESCORTS' EQUITY REVAMP
Article Abstract:
Financial institutions (FIs), including LIC, GIC and UTI, have refused to give permission for an equity reduction by Escorts Ltd. The FIs have expressed concern over depletion of the company's reserves if allowed to reduce equity. Sources say that the FIs may not give their approval till the guidelines on share buyback are announced by the government. FIs and banks hold a 32.37 percent stake in the Rs68.07 crore equity of the company. (khr)
Comment:
Fails to get approval for equity reduction by financial institutions, that includes LIC, GIC & UTI
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
ESCORTS NET MARGINALLY UP, TURNOVER DROPS 2%
Article Abstract:
Escorts Limited recorded a two percent decline in sales to Rs692.39 crore in the first half of 1998-99 (Rs706.42 crore in the first half of 1997-98). It posted a net profit of Rs55.62 crore (Rs55.25 crore). Its earnings per share has declined to Rs15.40 (Rs16.79). During July-September 1998, the company posted net profit of Rs33.60 crore on a turnover of Rs403.86 crore (Rs389.30 crore during July-September 1997). (gs)
Comment:
Escorts Limited recorded a two percent decline in sales to Rs692.39 crore in the first half of 1998-99 (Rs706.42 crore in the first half of 1997-98).
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
User Contributions:
Comment about this article or add new information about this topic: