Escorts Posts 6% Rise in Q1 Profit

New Delhi: Escorts on Thursday posted a 6.33 per cent rise in net profit at Rs 36.27 crore for the fiscal first quarter that ended on June 30, 2015.

The tractor maker had posted net profit of Rs 34.11 crore for the corresponding period a year ago.

Net sales declined to Rs 973.22 crore during the quarter under review as against Rs 1,122.10 crore a year ago, Escorts Ltd said in a filing to the BSE.

"The tractor industry has shown some recovery since the last quarter and the growth in volumes reflect that change intrend," Escorts chairman Rajan Nanda said.

Escorts managing director Nikhil Nanda said the fact the company bettered its comparable profits despite the negative market conditions is a result of a lot of efforts going into driving long-term profitability.

"The increase in profits is driven by cost compression, change in product mix, better inventory management and measures taken to curtail material cost," he added.

Shares in Escorts, on Thursday, ended over 4.5 per cent at Rs 158.10 apiece on the BSE.