Escorts total tractor sales jumped 31.1% YoY to 8,421 units in May 2022 from 6,423 units sold in May 2021.
On a sequential basis, tractor sales rose 1.15% in May 2022 from 8,325 units sold in April 2022.
Domestic tractor sales in May 2022 stood at 7,667 tractors as against 6,158 tractors sold in May 2021, registering a growth of 24.5% year on year. Export tractor sales in May 2022 were at 754 units in May 2022 against 265 units sold in May 2021, posting a jump of 184.5% year on year.
Escorts said it expects rural sentiment gradually improving inspite of low crop yields due to extreme heat conditions this harvest season, on account of better crop price realization and forecast of normal rainfall and possible timely sowing this year. With recent Government actions, inflation may stabilise in near term and operating leverage may further possibly help in partially diluting the impact on margins in coming quarters.
The company’s construction equipment segment (ECE) in May 2022 sold 305 machines as against 155 machines sold in May 2021, a surge of 96.8% year on year.
Escorts said that the growth trend continued in construction equipment industry last month due to low base of last year despite challenges on retail demand due to input cost escalation. With Government thrust on infrastructure we expect good recovery in the later part of current fiscal year 2022-23. But steep rise in input costs leading to higher owning cost for customers remains a key cause of concern.
The Escorts Group is an Indian engineering company that operates in the sectors of agri-machinery, construction and material handling equipment, and railway equipment.
Escorts reported 28.1% fall in consolidated net profit to Rs 190.92 crore on a 15.7% decline in revenue from operations to Rs 1,878.51 crore in Q4 FY22 over Q4 FY21.
Shares of Escorts were down 0.81% at Rs 1,617.45 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.)
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