Engineering company Escorts is set to announce its quarterly results on Monday. The stock is up 30 percent from the October lows on the expectations that the numbers will be good.
Here are key expectations:
- The revenue growth is expected to come in at 34 percent at Rs 1,612 crore as the tractor sales were very strong for the quarter under revenue.
- 36 percent year-on-year (YoY) growth is what we saw in terms of tractor sales. Domestic sales went up by almost 34 percent and the company has been gaining market share in the farm equipment segment.
- Apart from tractors, both the construction and the railways segment picked up substantially. In fact, in Q2, the construction volumes were up 37 percent.
- The management had indicated that demands for cranes, loaders and compactors has surged substantially, so there is an expectation that the trend would continue in this quarter as well.
- Overall, a profit growth of 42 percent is what the street is looking at and the margins will be largely stable at 12-12.5 percent.