Escorts Kubota Finance to Launch NBFC Operations on November 26

25 Nov 2024 , 11:21 AM

Escorts Kubota Ltd stated that its wholly-owned subsidiary, Escorts Kubota Finance Ltd, has become operational as a NBFC from November 26, 2024. The NBFC will not accept public deposits, the firm said in its stock exchange filing.

The revenues of Escorts Kubota for Q2 FY24 are at ₹2,488.5 crores, with the growth minimal to ₹2,478 crores against the same period last year. Net profit for the quarter was ₹324 crore, representing a 54% year-on-year (YoY) growth. EBITDA stood at ₹265 crore, flat YoY at ₹264 crore and margins remained steady at 10.6%.

Tractor sales were at 25,995 units, down 0.9% while construction equipment sales declined at 18.4% at 1,394 units for the quarter Revenue for the railway equipment division also declined by 9.9% YOY to ₹211.2 crore.

Another recent development is the business transfer agreement signed by Escorts Kubota with Sona BLW Precision Forgings Ltd. Through this, Escorts Kubota has agreed to transfer its railway equipment business division as a going concern.

The deal that is slated at ₹1,600 crores is on slump sale basis and the company has ensured that the business’s operations do not suffer any kind of dislocation.