Volume outlook to support gains for Escorts stock, infra push is crucial

Higher exports, non-agri usage could add to domestic growth

FY21 has been a strong year for tractor makers, as the segment is the only one to post double-digit growth across all segments in the auto space. For Escorts, which gets over 80 per cent of its revenues from this segment, the last year was a record one in which it sold over one lakh tractors registering a growth of 24 per cent.

After a strong March performance which saw its volumes increase 126 per cent year-on-year on a lower base, the company expects tractor demand to remain strong led by higher Rabi output, favourable crop prices and positive initial