New Delhi: Tractor maker Escorts on Tuesday said it will set up a new production facility within the next two years with a total installed capacity of 50,000 units per annum as it reported a robust growth in net profit for the quarter ended March 31 at Rs 73.22 crore.

The company on Tuesday reported its net profit for the quarter ended March 31, 2011, at Rs 73.22 crore as compared to Rs 41.47 crore in the corresponding period last year.

The total net operating income during the second quarter increased by 33.49 percent to Rs 901.81 crore from Rs 675.56 crore in the last year period.

During the January-March period, the company's tractor sales rose by 20.85 percent to 17,672 units from 14,623 units in the same period last fiscal.

The company currently has four tractor plants that can produce about 95,000 units annually.

"Our agri solution business performed very well during the quarter, besides robust contribution from the construction division. Sales grew very strongly and we have almost reached the peak of our production capacity," Escorts Joint Managing Director Nikhil Nanda said.

When asked about expanding its capacity, Nanda said: "We have decided to set up a new plant and this will be in a new location. The installed capacity of the plant will be 50,000
units and it will be operationalised within next two years".

He, however, declined to share details such as the location and the planned investment for the proposed unit.

"Besides, we are also investing Rs 165 crore in our agri machinery business, mainly to expand the capacity of higher powered engines and introduce higher HP tractors," Nanda said.

The company is setting up a machine shop with an annual installed capacity of about 50,000 units to supply parts to the upcoming facility, he added.

He said the company is investing another Rs 50 crore for its construction division to expand the capacity of material handling and earth moving equipments and introduce new products from its Ballabhgarh unit in Haryana.