Business Standard

Tractor growth, partnership with Japan's Kubota key triggers for Escorts

Gains in market share, margins, and new launches are already priced in

farmer, tractor
Premium

The growth in tractor volume estimates is based on a strong rabi season, steady kharif sowing, normal monsoons and improvement in availability of finance

Ram Prasad Sahu Mumbai
A better-than-expected June quarter performance and expectations of steady growth in FY21 led to a 4.5 per cent gain for the Escorts stock. The outperformance was because of a better product mix and lower expenses, which resulted in higher realisations and margin expansions. The operating front gains came despite a 14 per cent year-on-year (YoY) fall in tractor volumes. Agri machinery (tractors) is the largest of the three segments Escorts is in, and accounts for 80 per cent of its revenues. 

The operating profit margin expanded by 130 basis points YoY to 11 per cent as compared to Street estimates of

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 28 2020 | 2:11 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com