Escorts Kubota Limited reports Q2 profit fall amid rising commodity costs
1 report, 1 independent
Updated Nov 2
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What happened
Escorts Kubota Limited reported a 21.4 per cent fall in second-quarter profit, which totaled ₹250 crore. This decline occurred as rising commodity costs and an unfavorable product mix squeezed margins in the tractor business. Although revenue from operations rose 16.2 per cent to ₹3,243 crore, total expenses increased 21.2 per cent year-on-year.
Why it matters
The company is raising tractor prices again in November, citing input costs, inflation, and geopolitical uncertainties. The agricultural machinery segment's operating margin shrank to 7.8 per cent from 12.8 per cent due to commodity cost inflation.
Rising raw material prices are squeezing business margins.
Who's involved
- KubotaJapanese multinational manufacturing company and controlling shareholder