Escorts Kubota considering sale of its railway business: Exclusive

One must take note of the fact that Kubota Corporation, which is now the promoter entity of the tractor manufacturer, has no notable presence in the railways segment.

For the financial year 2023, Escorts Kubota's railway business reported revenue of Rs 842 crore, which was a growth of 33 percent from the previous financial year.

As of the financial year 2023, Escorts Kubota's railway business comprised 10 percent of the overall top line. Its share has tripled over the last decade. Around the financial year 2014, the same business had a share of just 3.1 percent of the overall top line.

In response to CNBC-TV18's queries, Escorts Kubota's management said that the railways business sale plan news is speculative in nature and they would not want to comment on the same. They further said that they keep exploring options for various businesses.

Shares of Escorts Kubota are currently at the day's low, currently trading 0.7 percent lower at Rs 3,012. The stock is trading close to its all-time high.