Escorts tractor sales jump 10% in July

The tractor maker on Saturday (1 August) said it sold 5,322 tractors, registering a growth of 9.5% against 4,860 tractors sold in July 2019.

Sequentially, however, tractor sales slumped 51% as against 10,851 units sold in June 2020.

While the domestic tractor sales increased 9.9% to 4,953 units, tractor exports rose 3.9% to 369 units in July 2020 over July 2019.

"During the month of July, we faced some supply chain challenges, especially with a few suppliers of proprietary items. As a result, we could operate only at about 50% of our capacity, resulting in unfulfilled demand. The situation has been continuously easing in the last few days of July, and hence we expect to go back to full capacity anytime up to mid-August 2020.

The supply side situation may continue to be dynamic for another couple of months. Our inventory levels, both with the company and with channel, continue to be at very low levels. We are optimistic for the coming months as the rural sentiments continue to remain positive, led by timely and widespread monsoon, higher sowing of Kharif crop and adequate availability of retail finance, the company said in a statement.

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.

The stock shed 0.48% to Rs 1128.40. It traded in the range of 1117.50 and 1144 so far during the day.

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