Escorts Kubota Limited — PPTs, 08-05-2025: Investor Presentation

1. Financial Highlights:

Revenue from operations rose 6.1% YoY to ₹2,430.3 Cr in Q4, driven by a 7.6% increase in tractor volumes (26,633 units), while construction equipment declined 12.2%. EBITDA margin slipped slightly to 12.1% due to higher input costs, but EBITDA remained stable at ₹292.9 Cr. PBT increased 9.7% to ₹358.3 Cr, and net profit grew 8.2% to ₹297.5 Cr. Full-year revenue was up 4.7% to ₹10,187 Cr, with EBITDA margin steady at 11.6%. Net profit surged 15.7% to ₹1,250.9 Cr. ROCE stood healthy at ~16.6%. Capacity utilization was ~60% for tractors and ~30% for construction equipment.

2. Strategic Initiatives & Growth Drivers:

Tractor volumes gained traction with a mix shift towards >40 HP models (33:67 split) and improved pricing. Operating leverage in agri machinery helped margin stability. Non-tractor agri revenue held steady at ~20%. Export volumes, mainly via Kubota channels, accounted for ~72% of total exports in Q4. Full-year tractor capacity utilization improved to ~70%, supporting growth prospects.

3. Business Developments:

The railway equipment business is being divested to Sona BLW Precision Forgings Limited via a ₹1,600 Cr slump sale, nearing completion. The order book for this segment remains strong at ~₹900 Cr. Consolidation via amalgamation of Escorts Kubota entities has streamlined operations.

4. Market Position & Competitive Advantage:

The company holds a solid 12.4% domestic tractor market share in Q4 (11.8% full year). It leads the mini excavator (26%) and pick & carry crane (36%) segments in construction equipment. A robust network of ~1,600 exclusive dealers supports market reach.

5. Investor Implications:

Consistent revenue and profit growth, combined with export strength and premium product focus, indicate positive growth potential in agri machinery. Construction equipment faces volume pressures, with capacity utilization at ~30%, but strategic divestment and portfolio focus could enhance capital efficiency. Execution risk lies in scaling construction equipment volumes and further margin improvement from operating leverage.