Escorts Kubota Q2 Results Review - Growth Outlook Improving: Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Escorts Kubota Ltd.'s Q2 FY25 results were weak led by first quarter of amalgamation of EKI and KAM. While CE/railways business performance was in-line, lower than expected margins in farm equipment segment led Ebitda margins at 10.8% (flat YoY/ -240 bp QoQ). Margins expansion for the merged entity to likely be gradual given full benefits of localization etc. to only kick-in over two-three years. However, improved volume outlook on tractors, price hikes undertaken, and benign raw material should help margins expansion QoQ. We believe, Escorts Kubota can surpass co guidance of mid-single digit industry volume growth for FY25E with sings of volume recovery in South/West markets (key markets for Kubota) to be supported by new launches in Escorts brand. While we remain constructive on growth opportunities for merged entity in tractor, implements, components sourcing and exports to synergize only over mid-term, near term margin recovery to be gradual. Co has indicated revision in MTPB targets, impacted by few factors such as delay in land acquisition for greenfield capacity, weak exports etc. We see Escorts Kubota’s market share remain range bound..Click on the attachment to read the full report:.RITES Q2 Results Review - Exports Segment To Improve: IDBI Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Escorts Kubota Q2 Results Review - Growth Outlook Improving: Yes Securities

The brokerage sees the company’s market share to remain range bound.

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Escorts Kubota Q2 Results Review - Growth Outlook Improving: Yes Securities

The brokerage sees the company’s market share to remain range bound.

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