NEW DELHI: Delhi-based tractor and farm equipment manufacturer Escorts will foray into manufacturing of railway wagons, besides expanding the basket
of products under its tractors division , a top company executive said.
Escorts’ joint MD Nikhil Nanda said: “We would be launching new tractors to keep the market exciting and aggressively increase our market share by expanding our dealership base in western and southern markets. Besides we would foray into making wagons for the Metro and the Monorail segment from our Railway division.”
Escorts, that follows a October to September fiscal year, reported net profit of Rs 23.4 crore for the first quarter ended December’ 09 compared to net loss of Rs 0.34 crore in the year ago period. Bottom-line was buoyed by lower costs and higher demand which also helped the company report 21 per cent increase in net sales at Rs 600.22 crore for the quarter.
The company also saw positive impact of its cost reduction measures which brought down the ratio of raw material to total sales to 67.8 per cent compared to 70.3 per cent in the corresponding period a year ago.
Escorts would pursue its multipronged strategy with agri-machinery, infrastructure and the railways division as the core business verticals. The companywill soon launch a slew of new tractor models.