Escorts Kubota Ltd Announces Tractor Price Hike Effective September 16, 2023

Leading tractor and construction machinery manufacturer, Escorts Kubota Ltd, has officially revealed plans to increase the prices of its tractors starting from September 16, 2023. This decision will impact various tractor models and variants across different geographic regions, signaling a strategic move by the company amidst evolving market dynamics.

In a statement released via a stock exchange filing, Escorts Kubota Ltd's Agri Machinery Business Division stated, "Escorts Kubota Ltd – Agri Machinery Business Division, shall be increasing the prices of its tractors effective 16th September 2023 onwards. The increase in prices would change across models/variants and areas."

This decision comes on the heels of Escorts Kubota's impressive financial performance in the first quarter of the fiscal year ending June 30, 2023. The company reported a remarkable 93 percent year-on-year (YoY) surge in net profit, reaching Rs 283 crore, compared to Rs 147.4 crore during the same quarter in the previous year. This substantial profit growth underscores the company's resilience and adaptability in a dynamic market environment.

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During the first quarter of the fiscal year, Escorts Kubota's total revenue reached Rs 2,327.7 crore, reflecting a substantial 15.5 percent increase compared to the corresponding period in the preceding fiscal year when it stood at Rs 2,014.9 crore. The company's positive financial performance is a testament to its commitment to delivering quality agricultural and construction machinery solutions.

At the operating level, Escorts Kubota Ltd reported a remarkable 61.8 percent surge in EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) during the first quarter of the fiscal year. EBITDA rose to Rs 327 crore, a substantial increase from Rs 202 crore in the same period of the previous fiscal year. This surge in EBITDA, coupled with an EBITDA margin of 14 percent for the reporting quarter, compared to 10 percent in the year-ago period, demonstrates the company's operational efficiency and strategic prowess.

Following this announcement, shares of Escorts Kubota Ltd closed at Rs 3,036.45 on the Bombay Stock Exchange (BSE), experiencing a marginal decrease of Rs 99.15 or 3.16 percent.

Escorts Kubota Ltd's decision to adjust tractor prices is seen as a measured response to market dynamics and its continued commitment to delivering high-quality machinery to its customers. The company's impressive financial results in the first quarter of the fiscal year underscore its strong position in the industry and its ability to adapt to evolving market conditions.

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