Escorts tractor sales decline 2.6% YoY in May

Escorts Agri Machinery Segment (EAM) in May 2021 sold 6,423 tractors against 6,594 tractors sold in May 2020, a decline of 2.6%.

Sequentially, Escorts' total tractor sales declined 2.37% in May 2021 compared with 6,979 tractors sold April 2021.

The company's domestic tractor sales declined 4.59% in May 2021 to 6,158 tractors as against 6,454 tractors in May 2020. Escorts said slowdown in demand is seen due to impact of COVID-19 in the rural parts impairing movement of customers and smooth operations of our dealerships. The company further said that the ground situation has somewhat eased in the last few days of the month, and it expects return to normalcy soon. In the medium term, the company expects rural sentiment to be strong, on account of all positive macroeconomic factors viz. prediction of a good monsoon, high crop production and better support by Government on crop prices. "Inflation continues unabated and remains a worry," the company said.

Tractor exports in May 2021 stood at 265 units as against 140 units sold in May 2020, registering a growth of 89.3%.

Shares of Escorts were up 0.83% at Rs 1,181.35 on BSE.

Escorts is one of India's leading engineering conglomerates. The company has diversified business in to three different segments: Escorts Agri Machinery (EAM), Escorts Construction Equipment (ECE) & Railway Equipment Division (RED). On a standalone basis, the company's net profit increased 93.2% to Rs 271.3 crore in Q4 FY21 from Rs 140.4 crore in Q4 FY20. Revenue from operations jumped 60.1% year-on-year (YoY) to Rs 2,210.5 crore during the quarter.

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