Shares of Escorts were trading 4 per cent higher at Rs 1,310 on the BSE in early morning trade on Friday after the company registered a strong 88 per cent year-on-year (YoY) growth in tractor sales at 7,733 units for the month of December. The tractor sales during the month were the company's highest-ever for the month of December.
“Agri Machinery Segment (EAM) in December 2020 sold 7,733 tractors, our highest ever December sales and registered a growth of 88 per cent against 4,114 tractors sold in December 2019,” Escorts said in an exchange filing. READ HERE
The domestic tractor sales for December 2020 were at 7,230 units, registering a growth of 90 per cent, against 3,806 tractors sold in December 2019. The export tractor sales during the month grew 63 per cent YoY at 503 tractors against 308 tractors sold in the same month of the previous year, it said.
Post lockdown, this is the first month where the company could supply as per the demand of customers, some of whom waited long to get their preferred tractor brand.
The management said going forward all macroeconomic factors remain in favour of continued growth and it does not expect any significant supply-demand gaps. Rising Inflation, however, continues to be a worry, it added.
For the first nine months (April-December) of the financial year 2020-21 (FY21), Escorts' total tractor sales rose 12.5 per cent YoY at 74,153 units against 65,910 units sold during the same period of FY20.
At 09:48 am, Escorts was trading 3.5 per cent higher at Rs 1,303 on the BSE, as compared to a 0.39 per cent rise in the S&P BSE Sensex. The stock hit a record high of Rs 1,453 on December 4, 2020. A combined 2.08 million equity shares changed hands on the counter on the NSE and BSE, data shows.