You are here: Home » Automobile » News
Business Standard

Escorts confident of double-digit growth in tractor sales in FY22

Escorts Ltd is confident of clocking a double-digit growth in tractor sales in 2021-22, having registered good volume in the first quarter, according to a senior company official.

Escorts tractor sales | Tractor Sales

Press Trust of India  |  New Delhi 

Escorts Tractors

Farm machinery and construction equipment major Escorts Ltd is confident of clocking a double-digit growth in in 2021-22, having registered good volume in the first quarter, according to a senior company official.

Despite the uneven spread of monsoon in its strong markets of north and east parts of the country, the company is confident that it will be able to continue its growth momentum.

However, it is expecting some slowdown as a result of increase in commodity prices resulting in higher cost of tractors.

"We had a good growth in the quarter one...the balance of the year obviously, some sort of slowness may come in...A lot will depend on how the monsoon distribution is," Escorts Group Chief Financial Officer and Corporate Head Bharat Madan told PTI.

Escorts registered 42.9 per cent growth in at 25,935 units in the quarter ended June 2021 as against 18,150 units in the corresponding period last fiscal.

When asked if the company is confident of registering a double- digit growth, he said,"Yes, absolutely."

Elaborating further, he said,"As of now we've seen that good growth is coming up in the southern and western markets, the rainfall has been quite good but in our stronger market (north and east) monsoon is slightly slow."

Madan, who is slated to be elevated as Escorts Ltd President Finance and Group Chief Financial Officer and Corporate Head from April 1, 2022, further said,"If you see a good monsoon catching up again in the northern and eastern belt then we'll see a good number and market will improve."

By September, he said there will be more clarity as to which regions are going to do better, where there has been good rainfall and will do better next season or how they'll get impacted.

One big concern for the tractor industry, he said is the rising commodity prices forcing tractor manufacturers to hike prices, which can have an impact on demand.

"It is going up every quarter. It's giving us concern now...We have already taken three price increases in the last five months," he said, adding that from farmers' perspective these are steep increases which they had not anticipated.

On the COVID-19 impact, he said it is not much at present and the dealerships are also functioning.

However, Madan said,"The pandemic is again a hanging sword. We don't know what will happen, looking at developed countries where third-fourth waves are happening.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, September 12 2021. 13:16 IST