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Escorts sold 6,979 tractors in April 2021 as compared to 705 tractors sold in April 2020.
The company's Agri Machinery Segment (EAM) recorded domestic sales of 6,386 tractors in April 2021 as against 613 tractors in April 2020.
The demand in April last year was drastically impacted by COVID-19 national lockdown; so was it in April 2021 although not to the same extent. This time around supply chain had minimal impact from local restrictions owing to the second wave of COVID-19.
This enabled the company to build some inventory in anticipation of some pent-up demand as the pandemic situation improves. The medium-term macroeconomic factors remain positive on account of record rabi harvest, sustained crop prices, and good prediction of monsoons this year. Inflation continues unabated and remains a worry.
Tractor exports were at 593 in April 2021 as against 92 units sold in April 2020.
The company's Construction Equipment Segment (ECE) in April 2021 sold 189 machines as compared to 7 machines sold in April 2020.
Escorts said that April 2020 sales was adversely affected by the COVID-19 lockdown and are not strictly comparable.
The Industry was majorly impacted due to the massive surge in coronavirus infection all across the country. Due to the shortage of certain critical items, including industrial oxygen, the production was also adversely affected during the month. The situation is, however, likely to improve with accelerated vaccination program and other measures being adopted by the Government in the near term.
"Given the Government thrust on monetization through disinvestment and the huge projects under National Infrastructure Pipeline (NIP), we expect the industry to show stronger recovery going forward," the company said in a statement.
Escorts is an engineering conglomerate. The company has diversified business in to three different segments. Escorts Agri Machinery (EAM), Escorts Construction Equipment (ECE) & Railway Equipment Division (RED).
The company's consolidated net profit jumped by 85.1% to Rs 286.71 crore on a 23.8% rise in revenue from operations to Rs 2,042.23 crore in Q3 FY21 over Q3 FY20.
The scrip was currently up 0.04% at Rs 1119.10 on the BSE.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)