Our business model
At Escorts, we possess a business model that is structured to protect in challenging markets and catalyse during sectoral rebounds, driving profitable – yet sustainable – growth.
our key
business drivers
- Focus on the manufacture of engineered products (tractors, construction equipment, railway products and auto products) core to national growth and aspirational lifestyles
- Product complement helping counter slowdowns
and cyclicality - Prominent presence in India’s tractor business
- Large manufacturing infrastructure (annual installed tractor capacity of 1 lac units), ensuring uninterrupted production
- Focus on frugal engineering excellence across manufacturing facilities (India and Europe)
- Focus on value-addition over linear volume growth
- Strong Balance Sheet (debt-equity ratio of 0.24 in 2012-14), indicating fiscal conservatism
- Talented and enterprising team
- License to operate through strong community welfare and responsible environment management practices
help deliver
attractive value
Faster tractor volume growth
8.61% CAGR
over the past five years
(ending 2012-14
Company’s revenue grew at
9.01% CAGR
over the past three years
(ending 2012-14)
Better growth in EBIDTA
margins 150 bps
over the past three years
(ending 2012-14)
Net profit growth
18 bps
over the past three years
(ending 2012-14)
Consistent dividend payout
track record since past decade;
cumulative dividend distribution of
77.9 cr
over the past five years (ending
2012-14)
At Escorts, our core business drivers strengthen our sustainability, enabling us to
create a strong foundation for long-term growth and value creation.
