“…we are pleased to inform you that Escorts Kubota Finance Limited, a wholly owned subsidiary company of the company is intending to commence its business activities of non-banking financial institution without accepting public deposits from November 26, 2024,” according to a stock exchange filing.
Escorts Kubota’s revenue for the second quarter was almost flat at ₹2,488.5 crore, compared to ₹2,478 crore during the same quarter last year. Net profit for the company came in at ₹324 crore. On a year-on-year basis, Escorts Kubota’s bottom line increased by 54%.
Also Read: Escorts Kubota tractor sales up 19.8% at 18,110 units in October
Escorts Kubota’s Earnings Before Interest, Tax, Depreciation and Amortisation stood at ₹265 crore, which was flat as against ₹264 crore reported in the year-ago quarter. Margins too were flat at 10.6%. Tractor sales fell by 0.9% at 25,995 units, while construction equipment sales dropped by 18.4% at 1,394 units. The railway equipment revenue was down by 9.9% at ₹211.2 crore.
The company recently announced that it has signed a business transfer agreement with Sona BLW Precision Forgings Ltd. for the transfer of its railway equipment business division as a going concern, on a slump sale basis, for a cash consideration of ₹1,600 crore.
Escorts Kubota attributed the sale to simplifying its operations, capital reallocation leading to an increase in scale and efficiency of the core business. Shares of Escorts Kubota Ltd ended at ₹3,510.15, up by ₹56.30, or 1.63% on the BSE.
Also Read: Escorts Kubota shares fall 9% after sale of rail equipment business to Sona BLW
