Escorts Kubota reported second-quarter profit above estimates on Thursday, helped by growth in its agricultural machinery segment.
The company reported standalone net profit of 3.27 billion rupees (USD 38.8 million) in the three months ended Sept 30. Analysts were expecting a profit of 2.63 billion rupees, according to data compiled by LSEG.
Revenue rose 0.5% to 24.76 billion rupees, while expenses rose by 0.7% to 22.81 billion rupees.
The company’s domestic sales rose 0.3%, compared to a 4.3% decline in the year-ago period.
Its main revenue driver, the agri machinery segment which includes tractors, sprayers, and tillage tools, grew 5.3% year-over-year, offsetting weakness in the construction machinery and railway segments.
Escorts Kubota also benefitted from a deferred tax gain of 524.8 million rupees, while the cost of raw materials fell 13.1%.
