Escorts' Agri Machinery Segment (EAM) in October 2020 sold 13,664 tractors, the company's highest ever October sales and registered a growth of 2.3% from 13,353 tractors sold in October 2019.
Sequentially, the company's tractor sales surged 15.3% in October 2020 from 11,851 units sold in September 2020.Domestic tractor sales in October 2020 was at 13,180 tractors, registering a growth of 1.1% from 13,034 tractors sold in October 2019. Export tractor sales in October 2020 was at 484 tractors, 51.7% higher than 319 tractors exported in October 2019.
Escorts said despite operating at near-full capacity, the demand outpaced supply resulting in lower-than-normal inventories. Festival period of Navratri and Dussehra witnessed good footfalls, however sales even prior to that remained buoyant. The tractor maker added that the demand is driven fundamentally because of higher crop production, good crop prices, sufficient availability of water and easy availability of finance. Escorts assured that it expects demand momentum to continue and supply chain issues smoothened out in the next few months but inflation in commodity prices remains a worry.
On a consolidated basis, the tractor maker's net profit rose 5.6% to Rs 92.58 crore on 24.4% decline in net sales to Rs 1,089.26 crore in Q1 June 2020 over Q1 June 2019. The company will announce its Q2 September 2020 results today, 2 November 2020.
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 0.91% to Rs 1190.40 on the BSE. It traded in the range of Rs 1185.85 and Rs 1212.45 so far during the day.
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