Escorts Agri Machinery grew by 15.5 percent in June 2021 to 12,533 tractors MoM Volume up by 95.1 percent

Escorts Ltd Agri Machinery Segment (EAM) in June 2021 sold 12,533 tractors, its highest ever June sales and registering a growth of 15.5 percent against 10,851 tractors sold in June 2020.

Domestic tractor sales in June 2021 was at 11,956 tractors as against 10,623 tractors in June 2020, registering a growth of 12.5 percent. The continued growth in our volumes and that of tractor industry is a testament of resilience of rural and Agri sectors. Despite the challenges posed by the pandemic, the farmers of our country continued to work hard to make sure all of us have food on their plates.

The on-ground situation eased in June as the second wave of pandemic started diluting. Most of the dealerships, except in few pockets, were able to remain open and serve customers, though for limited hours of operation.

Our inventory levels, both with the company and with the channel, continue to be at normal levels. We remain optimistic for the rest of the fiscal year, as timely and expected above-normal monsoon, increase in MSP prices, and record direct procurement by Government is leading to a positive build-up of farmer sentiments. The commercial activity also is expected to gain further momentum in the ensuing months. The enhanced pace of mass vaccinations is further going to help the rural sector.

Inflation however continues unabated beyond industry expectations. While we are trying to offset a part of this through internal cost control measures, we have announced a significant price hike effective 1st July 2021 on all tractors. This is our third consecutive price hike in the last nine months. Despite this, inflation continues to put pressure on the margins.

Export tractor sales in June 2021 was at 577 tractors against 228 tractors sold in June 2020, registering a growth of 153.1 percent.

Shares of ESCORTS LTD. was last trading in BSE at Rs.1220.85 as compared to the previous close of Rs. 1195.05. The total number of shares traded during the day was 128328 in over 5165 trades.

The stock hit an intraday high of Rs. 1224.5 and intraday low of 1195.5. The net turnover during the day was Rs. 156061107.

Source : Equity Bulls

Keywords