Escorts drop after tractor sales fall 26% year-on-year in September
Escorts fell 1.86% to Rs 1,452.80 after the company’s total tractor sales fell 25.6% year-on-year to 8,816 units in September 2021 from 11,851 units sold in September 2020 .
The company’s Agri Machinery (EAM) product segment tractor sales are 54.9% higher than in August 2021.
National tractor sales in September 2021 were 7,975 tractors compared to 11,453 tractors in September 2020, registering a decrease of 30.4% year-on-year.
With a record monsoon in September, this year’s rainfall deficit has been largely recovered, which bodes well for the industry in the coming months. However, above-normal rainfall in September delayed the harvest in parts of the country, causing a two to four week delay in the start of demand for the holiday season. All other macroeconomic factors remain favorable. Inflation in the prices of various commodities continues to be a matter of near-term concern.
Tractor export sales in September 2021 were 841 tractors compared to 398 tractors sold in September 2020, growing 111.3% year-on-year.
The company’s total tractor sales declined 13.8% to 21,073 units in Q2 FY22 from 24,441 units in Q2 FY21.
The Escorts Group is an Indian engineering company operating in the agricultural machinery, construction and handling equipment, and railway equipment industries.
The company reported a 92.8% increase in consolidated net profit to Rs 178.5 crore on a 56.2% increase in operating income to Rs 1,701.8 crore in the first quarter of fiscal 22 compared to the first quarter of fiscal year 21.
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