Escorts slips after tractor sales fall by 26% YoY in September

Escorts fell 1.86% to Rs 1452.80 after the company's total tractor sales declined by 25.6% YoY to 8,816 units in September 2021 from 11,851 units sold in September 2020.

Tractor sales of the company's Agri Machinery products segment (EAM) are higher by 54.9% as compared with August 2021.

Domestic tractor sales in September 2021 was at 7,975 tractors as against 11,453 tractors in September 2020, registering a degrowth of 30.4% on a YoY basis.

With record monsoon activity in September, this year's rainfall deficit has largely been recovered, which augurs well for industry in the upcoming months. However above normal rainfall in September has delayed harvesting in some parts of the country resulting in a two-to-four-week delay in the onset of the festive season demand. All other macroeconomic factors remain favourable. Inflation in various commodity prices continues to be an area of concern in the short term.

Export tractor sales in September 2021 was at 841 tractors against 398 tractors sold in September 2020, registering a growth of 111.3% on a YoY basis.

The company's total tractor sales declined by 13.8% to 21,073 units in Q2 FY22 from 24,441 units in 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.

The company reported 92.8% rise in consolidated net profit to Rs 178.5 crore on a 56.2% increase in revenue from operations to Rs 1,701.8 crore in Q1 FY22 over Q1 FY21.

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