ESCORTS

** Shares of Indian tractor maker Escorts Kubota ESCO.NS down 3.3% at 3,193 rupees

** Of 17 analysts covering ESCO, four downgraded the co's stock rating and three cut TPs - according to data compiled by LSEG

GROWTH, MARKET SHARE WOES AMID RICH VALUATIONS

** Ambit Capital ("sell", TP: 3349 rupees): Weak performance in tractor business makes the co a laggard in the industry, in terms of growth

** Co's journey to increase exports 2-3x, market share to 18% (from current ~12%) may be long-drawn - Ambit

** Asian Markets Securities (AMSEC) ("sell", TP: 2,900 rupees): Co plans to introduce Uber-like model for tractors to make it more affordable for small farmers

** While co may be planning a strong transformative strategy to assist its mid- to long-term growth, current valuations seem rich to justify the near-term growth - AMSEC

** BOB Capital Markets ("sell", raises TP to 2,533 rupees from 2,426 rupees) expects performance at co's other segment - construction equipment - to improve, says tractor business to continue facing hurdles on intense competition-led discounts

(Reporting by Hritam Mukherjee in Bengaluru)

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Feb 10 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• DIVIDEND OF 10 RUPEES PER SHARE

• DEC-QUARTER NET PROFIT 3.23 BILLION RUPEES

• DEC-QUARTER REVENUE FROM OPERATIONS 29.35 BILLION RUPEES

Source text: [ID:]

Further company coverage: ESCO.NS

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Feb 1 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• ESCORTS KUBOTA LTD - SOLD 6,669 TRACTORS IN JANUARY 2025

Source text: ID:nNSE3Y29QJ

Further company coverage: ESCO.NS

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Jan 14 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• TAX IMPLICATION REDUCED BY 8.4 MILLION RUPEES AFTER COURT ORDER

Source text: ID:nBSE9pJnNs

Further company coverage: ESCO.NS

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** Shares of tractor and construction equipment maker Escorts Kubota ESCO.NS down 2.8% at 3,239 rupees

** Stock among top losers on Nifty 500 index .NIFTY500, which is little changed

** ESCO reports 12.5% year-on-year fall in domestic tractor sales in Dec; total tractor sales decline by 10.8%

** Average recommendation of 17 analysts is a "hold," their median PT is 3,451 rupees - LSEG

** Stock rose ~11% in 2024, compared to 15% jump in Nifty 500

(Reporting by Yagnoseni Das in Bengaluru)

(([email protected];))

** Shares of Escorts Kubota Ltd ESCO.NS rise as much as 4.4% to 3,663.15 rupees

** The tractor maker says its unit intends to start a non-banking financial institution business without accepting public deposits from Nov. 26

** The mean rating of 17 brokerages rating the stock is "hold"; their median PT is 3,451 rupees - LSEG data

** ESCO last up 4%, adding to YTD gains of 22.3%

(Reporting by Meenakshi Maidas in Bengaluru)

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Nov 7 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• ESCORTS KUBOTA Q2 NET PROFIT 3.27 BILLION RUPEES

• ESCORTS KUBOTA Q2 REVENUE FROM OPERATIONS 24.76 BILLION RUPEES

Source text: ID:nBSE6F3NSG

Further company coverage: ESCO.NS

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Nov 1 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• ESCORTS KUBOTA - TRACTOR VOLUME GREW BY 19.8% Y/Y IN OCTOBER 2024

Source text: ID:nBSE340sMM

Further company coverage: ESCO.NS

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** Shares of Escorts Kubota ESCO.NS rise 3.3% to 3,983 rupees

** Brokerage Emkay Research upgrades ESCO to 'buy' from 'add', with a revised TP of 4,700 per share (previous: 4,450 rupees), an upside of 21.91% to last close

** Says, tractor market expected to enter an upcycle from H2 FY25 on healthy monsoon

** Adds, a 5% shift in Kubota's 6326.T global sourcing to India could create a ~$500 mln opportunity for ESCO

** Analysts rate ESCO a "sell" on avg; median PT is 3,548 rupees - LSEG data

** ESCO up 33% YTD

(Reporting by Yagnoseni Das in Bengaluru)

(([email protected];))

Sept 26 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• ESCORTS KUBOTA LTD - RBI GRANTS CERTIFICATE OF REGISTRATION TO UNIT ESCORTS KUBOTA FINANCE

• ESCORTS KUBOTA LTD - UNIT GETS COR TO START BUSINESS OF NON-BANKING FINANCIAL INSTITUTION

Source text for Eikon: ID:nBSE78bCDb

Further company coverage: ESCO.NS

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Sept 2 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• ESCORTS KUBOTA LTD - SOLD 5,614 TRACTORS IN AUGUST 2024

• ESCORTS KUBOTA - ESCORTS KUBOTA SOLD 5,614 TRACTORS IN AUGUST 2024

• ESCORTS KUBOTA LTD - ANTICIPATE DEMAND TO ACCELERATE IN COMING FESTIVE MONTHS

Further company coverage: ESCO.NS

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Aug 16 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• INVESTMENT INTENT SUBMITTED TO UTTAR PRADESH GOVERNMENT TO ACQUIRE LAND

• LAND INTENDED TO SET UP INTEGRATED GREENFIELD MANUFACTURING FACILITY

• ESTIMATED DIRECT, INDIRECT INVESTMENT OF ABOUT 45 BILLION RUPEES TO BE DONE IN PHASES

Further company coverage: ESCO.NS

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** Shares of Escorts Kubota ESCO.NS down 5.5% at 3,927 rupees; biggest intra-day fall since April 2022

** Co on Thursday reported slowest profit growth in five quarters, 2% rev decline

** Merger with Kubota is facing hurdles from product

development and quality improvement issues for the exports - PhillipCapital

** Stock among top losers in mid-cap index .NIFTYMDCP100, which is down 0.6% for day

** ESCO up 31% YTD vs 26% gains in mid-cap index

(Reporting by Sethuraman NR in Bengaluru)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

Aug 1 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• ESCORTS KUBOTA LTD - TRACTOR VOLUME GREW BY 3.6% IN JULY 2024

Source text for Eikon: [ID:]

Further company coverage: ESCO.NS

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July 1 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• ESCORTS KUBOTA LTD - ESCORTS KUBOTA LIMITED SOLD 9,593 TRACTORS IN JUNE 2024

• ESCORTS KUBOTA LTD- ANTICIPATE DEMAND TO IMPROVE IN COMING MONTHS

Source text for Eikon: ID:nBSE97v0gY

Further company coverage: ESCO.NS

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June 19 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• COMPANY HAS WITHDRAWN EXPRESSION OF INTEREST FOR PROPOSED ACQUISITION OF LAND IN GHILOTH, RAJASTHAN

• WITHDRAWAL AS LOCATION DOES NOT MEET ALL KEY REQUIREMENTS FOR A LARGE SCALE PROJECT BEING PLANNED

• CONTINUES TO EXPLORE ALTERNATE OPTIONS WITH OTHER STATE(S)INCLUDING RAJASTHAN

Further company coverage: ESCO.NS

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** Shares of tractor maker Escorts Kubota ESCO.NS up 2% at 3,513 rupees

** Co reported 30.5% rise in Q4 profit despite revenue declining 4.6% as costs also eased

** Year-ago profit was also impacted by a one-time charge of 244 mln rupees

** Nuvama says outlook for FY24–26 is positive for agri, railways and construction equipment segments; agri growth likely to turn around in FY25 due to normal monsoon and benign government policies

** Estimates EBITDA margin to grow to 14.3% and 15% in FY26 and FY28 from 13.3% in FY24

** Phillip Capital flags multiple headwinds for tractors, including lower water reservoir levels, lower haulage activity due to elections

** VST Tillers Tractors VST.NS down 4.4% at 3,271.85 rupees on a decline in Q4 profit, rev

** Avg recommendation on ESCO is a 'hold' while VST is rated 'buy' - LSEG

** ESCO up 18.4% YTD, VST.NS down 13% vs Nifty auto index's .NIFTYAUTO 22.6% rise

(Reporting by Rama Venkat and Sethuraman NR in Bengaluru)

(([email protected]; https://twitter.com/ramavenkat0607;))

BENGALURU, May 9 (Reuters) - Indian tractor maker Escorts Kubota ESCO.NS reported a 30.5% rise in fourth-quarter profit on Thursday, as a fall in costs offset lower demand.

WHY IT'S IMPORTANT

Tractor sales are often seen as an indicator of the health of the rural economy and farm incomes in India.

The domestic tractor sector saw a decline in volumes in the quarter, as agricultural income was hit by patchy monsoon rains and falling reservoir levels, analysts said.

BY THE NUMBERS

Escorts Kubota's net profit rose to 2.42 billion rupees ($29 million) for the three months ended March 31 from 1.85 billion rupees a year earlier.

Revenue from operations fell 4.6% to 20.82 billion rupees after seven straight quarters of growth.

Quarterly sales for Escorts Kubota were down 14.2% year-over-year.

Total expenses were down 6.2% at 18.64 billion rupees.

WHAT'S NEXT

Early signs of a normal monsoon in 2025 are expected to enhance rural sentiment and drive tractor sales in the current fiscal year, the company said in a sales report in March. It expects demand to stabilize after the general elections.

($1 = 83.5100 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Eileen Soreng)

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Corrects paragraph 3 to say auto sector contributes around 7% to India's economy, not more than 50%

BENGALURU, May 1 (Reuters) - Automaker Tata Motors TAMO.NS and Hyundai Motor's 005380.KS India unit reported higher sales in April from a year earlier, while sales of truck maker Eicher Motors EICH.NS dipped, monthly data from the companies showed on Wednesday.

Each month, automobile makers in India release wholesale numbers, or vehicle sales to dealers.

WHY IT'S IMPORTANT

The sales numbers are seen as a key indicator of private consumption in India. The auto sector contributes around 7% to India's economy.

CONTEXT

Indian automakers posted record sales volumes in fiscal 2024, with momentum expected to continue into the current financial year.

In April, two-wheeler sales surged amid regional festivals or weddings, while pricier sport utility vehicles (SUVs) were preferred by customers looking to buy cars, analysts noted.

Rising consumer income levels and the availability of easy financing options with lower EMIs (equated monthly instalments) have helped bolster SUV sales, said Amit Hiranandani, automobile sector lead analyst at brokerage SMIFS.

Meanwhile, sales of small cars have been subdued, with high inflation making them unaffordable for their target demographic.

BY THE NUMBERS

(Reporting by Varun Hebbalalu and Meenakshi Maidas in Bengaluru; Editing by Rashmi Aich and Eileen Soreng)

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** Shares of Escorts Kubota ESCO.NS up 2.2% at 3,178 rupees, highest since Dec. 18, 2023

** Tractor manufacturer announces price hike from May 1

** Stock was up 0.8% before news

** ESCO did not mention quantum of price hike but said it would vary from across models

** Over 315,000 shares traded, 1.2x 30-day avg volume

** Analysts rate ESCO a "hold" on avg, while rate market leader Mahindra & Mahindra a "buy" .MAHM.NS -LSEG data

** ESCO has risen ~7% YTD, trailing MAHM's 20% jump but outperforming smaller rival VST Tillers' VST.NS 10% drop

(Reporting by Nandan Mandayam in Bengaluru)

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April 1 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• ESCORTS KUBOTA SOLD 8,587 TRACTORS IN MARCH 2024

Source text for Eikon: [ID:]

Further company coverage: ESCO.NS

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March 29 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• ESCORTS KUBOTA LTD - REDUCE ITS FINANCIAL EXPOSURE RELATED TO TAX ORDERS

• ESCORTS KUBOTA LTD - REDUCED EXPOSURE TO 788.4 MILLION RUPEES AND 405.3 MILLION RUPEES IN TWO TAX ORDERS

Source text for Eikon: ID:nBSE6K850C

Further company coverage: ESCO.NS

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March 27 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• RECTIFICATION ORDER PASSED BY EXCISE & TAXATION OFFICER, REDUCING DEMAND BY 2 MILLION RUPEES

Further company coverage: ESCO.NS

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March 1 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• ESCORTS KUBOTA SOLD 6,481 TRACTORS IN FEB 2024

Source text for Eikon: [ID:]

Further company coverage: ESCO.NS

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Feb 15 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• ESCORTS KUBOTA LTD - EXECUTED A LONG-TERM WAGE SETTLEMENT AGREEMENT WITH WORKERS' UNION FOR A PERIOD OF 3

• ESCORTS KUBOTA LTD - EXECUTED A LONG-TERM WAGE SETTLEMENT AGREEMENT WITH WORKERS' UNION FOR A PERIOD OF 3 YRS

Source text for Eikon: ID:nBSEBzWRD

Further company coverage: ESCO.NS

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** Shares of tractor maker Escorts Kubota ESCO.NS down 8% at 2,700 rupees

** Tractor maker missed analysts' profit estimates for third quarter

** Co's standalone net profit rose nearly 49%, rev from ops up 2.5%

** Stock posts biggest intraday pct loss since April 2022; on track for a third week of consecutive losses

** Expect tractor volumes to have ~2% CAGR over FY23-26, but FY24 might see a 6%-7% decline due to challenges such as erratic rainfall, especially in western and southern India - Motilal Oswal

** Expect margin performance across segments such as agriculture, construction equipment and railway equipment to remain stable, considering factors like stable commodity prices and pricing strategies - Kotak Institutional Equities

(Reporting by Navamya Ganesh Acharya in Bengaluru)

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BENGALURU, Feb 8 (Reuters) - Indian tractor maker Escorts Kubota Ltd ESCO.NS reported a smaller-than-expected third-quarter profit on Thursday, as lower demand offset the fall in costs.

The company's standalone net profit rose nearly 49% to 2.77 billion rupees (about $33 million) for the three months ended Dec. 31, but fell short of analysts' expectations of 2.82 billion rupees, per LSEG data.

India's festive period was a mixed one for tractors, analysts said. Uneven and below-normal rains towards the end of quarter also did not help.

Tractor demand in India eased due to delays in crop harvesting and sowing. Escorts sold 25,999 tractors in the third quarter, down 7.2% from a year ago.

Revenue rose 2.5% to 23.20 billion rupees, the slowest growth since at least March 2022.

The agri-machinery products segment, which accounts for more than 70% of total revenue for Escorts Kubota, fell 2.9% in the quarter.

Proceeds from the smaller construction equipment segment rose 49.4%, while that from railway equipment fell 17.8%.

Cost of materials consumed, which form the majority of total expenses, fell nearly 8% to 12.93 billion rupees.

Larger rival Mahindra and Mahindra Ltd MAHM.NS is set to post its quarterly earnings next week.

($1 = 82.9640 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala)

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Jan 11 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• GETS GST ORDERS WITH PENALTIES AMOUNTING TO 2 MILLION RUPEES

Further company coverage: ESCO.NS

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Jan 1 (Reuters) - Escorts Kubota Ltd ESCO.NS:

• SOLD 4,536 TRACTORS IN DECEMBER 2023

• DOMESTIC TRACTOR SALES IN DECEMBER 2023 WERE AT 4,131 TRACTORS

• RURAL SENTIMENTS IMPACTED DUE TO DELAY IN CROP HARVEST, LOWER RABI SOWING, AFFECTING BOTH RETAIL AND WHOLESALE

• EXPORT TRACTOR SALES IN DECEMBER 2023 WERE AT 405

Source text for Eikon: ID:nBSE4KL1TK

Further company coverage: ESCO.NS

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** Shares of tractor and construction equipment maker Escorts Kubota ESCO.NS up 3% at 3,245 rupees

** ESCO posted a 6.7% year-on-year rise in domestic tractor sales; total tractor sales rose 3.7%

** ESCO rose as much as 3.3%, marking its sharpest intraday pct gain since Oct 10

** Stock set to snap three straight session of losses

** Average rating of 18 analysts covering the stock is "hold," their median PT is 2,500 rupees- ~23% lower than the current price

** Stock is up ~51% YTD

(Reporitng by Nishit Navin in Bengaluru)

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