Escorts Kubota shares slip 3% on weak domestic auto sales in December 2024

Escorts share price: Escorts Kubota said its December 2024 sales fell 10.8 per cent year-on-year (Y-o-Y) to 5,472 units compared with 6,136 units sold in December 2023

Escorts Kubota December auto sales: Escorts Kubota share price today declined over 3 per cent on the National Stock Exchange (NSE) amid weak December sales.

 

Escorts Kubota shares fell 3.2 per cent intraday on the NSE to hit a low of Rs 3,222.6 per share as against a 0.08 per cent dip in the benchmark Nifty50 index at 10:15 AM.

 

In a stock exchange filing, Escorts Kubota said its December 2024 sales fell 10.8 per cent year-on-year (Y-o-Y) to 5,472 units compared with 6,136 units sold in December 2023.

 

The drag in sales was driven by weak domestic sales, where total domestic tractor sales fell 12.5 per cent Y-o-Y to 5,016 units, down from 5,731 tractor units Y-o-Y.

 

 

The management, however, said it anticipates an increase in demand momentum, especially domestic demand, driven by kharif procurement, robust rabi sowing, and enhanced water levels in reservoirs.

 

Export tractor sales in December 2024, meanwhile, were at 456 tractors, registering a growth of 12.6 per cent, as against 405 tractors sold in December 2023, Escorts Kubota said.

 

For the nine-months ending December 2024, Escorts Kubota’s total sales were down by 0.8 per cent Y-o-Y to 88,921 units as against 89,649 units sold in the corresponding period last year.

 

Escorts Kubota's construction business sales update, Dec 2024:

Meanwhile, Escorts Kubota’s Construction Equipment Business Division, in December 2024, sold 873 machines, registering their highest-ever monthly sales.

 

This was a growth of 10.2 per cent Y-o-Y as against 792 machines sold in December 2023.

 

"Construction Equipment (CE) December sales were driven by the upcoming changes in emission standards set to take effect in January 2025. Looking ahead, we anticipate a favorable market trend in the CE industry supported with expected capex push by the central government in coming months, but emission norm changes and resultant cost increase may have some impact on the demand in the short term," Escorts Kubota cautioned.

 

Escorts Kubota, formerly Escorts Ltd, is one of India's leading engineering conglomerates. The company has diversified business across various divisions, Agri Machinery Business Division, Construction Equipment Business Division, and Railway Equipment Business Division.