Escorts gallops after strong tractor sales in August

Escorts jumped 3.33% to Rs 1123.20 after the company said its total tractor sales surged 80% to 7,268 units in August 2020 over August 2019.

Sequentially, the company's total tractor sales jumped 37% in August 2020 from 5,322 units sold in July 2020.

Total domestic tractor sales stood at 6,750 units (up 79.4% YoY) and total exports were at 518 units (up 90.4% YoY) in August 2020.

"The market sentiment continues to be highly positive with good monsoons, better Kharif sowing, crop prices holding up well, and good supply of retail finance. We remain optimistic for the coming festive months. The supply side situation improved significantly as compared to last month. We are currently operating close to peak capacity now. In August 2020 we could build some inventory both at dealer and depots, which since last few months was at very low levels," the company said in its outlook for the domestic market.

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 Escorts Group is an Indian engineering company that operates in the sectors of agri-machinery, construction and material handling equipment, and railway equipment.

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