Escorts Agri Machinery (EAM) in December 2021 sold 4,695 tractors as against 7,733 tractors sold in December 2020, a drop of 39.3% year-on-year (YoY).
On a sequential basis, Escorts recorded a 34.02% decline in total tractor sales in December 2021 from 7,116 units sold in November 2021.The company's domestic tractor sales in December 2021 stood at 4,080 units as against 7,230 units in December 2020, registering a decline of 43.57% YoY.
"Rural cash flows started to improve, but industry wholesales were impacted during the month of December 2021 due to high base last year. Going forward, all macroeconomic factors including healthy water reservoir level remains in favour of the tractor industry. We have taken price increase, but rising inflation continues to be a worry," the company said in a statement.
The firm's tractor exports in December 2021 was at 615 tractors against 503 tractors sold in December 2020, registering a growth of 22.3%.
The company's total sales fell 19.8% to 25,325 units in Q2 December 2021 over Q2 December 2020.
Meanwhile, Escorts Construction Equipment Segment (ECE) in December 2021 sold 377 machines against 438 machines sold in December 2020, a drop of 13.9% year-on-year.
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The company said that construction equipment industry is currently facing short term challenges due to delay in mobilisation of projects and low rental rates for the retail customers. Going forward, with big tail of projects under various stage of execution and the new projects awarded by the government, the company expects the demand to trigger, however industry might get impacted due to recent COVID-19 restrictions. Rising inflation continues to be a worry, it added.
Escorts reported 23.7% fall in standalone net profit to Rs 173.47 crore on a 1.2% rise in net sales to Rs 1,673.85 crore in Q2 FY22 over Q2 FY21.
The Escorts Group is an Indian engineering company that operates in the sectors of agri-machinery, construction and material handling equipment, and railway equipment.
Shares of Escorts fell 0.08% at Rs 1906.35 on Friday, 31 December 2021.
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