Escorts Limited has announced that in the current fiscal year, i.e. fiscal year 21, it has achieved landmark sales of 1,00,000 tractors. It surpassed the highest sales to date for the entire 2018-19 fiscal year.
Earlier this month, the company announced that it had sold 11,230 tractors in February 2021. This was the highest sale ever in February. Compared to 8,601 tractors sold in February 2020, growth of 30.6 percent was recorded.
Domestic tractor sales stood at 10,690 tractors in February 2021, up 32.8 percent from 8,049 tractors in February 2020. According to management, demand for tractors is expected to continue to be strong due to positive macroeconomic factors and strong rural cash flows.
In financial terms, Escorts consolidated sales for the third quarter of FY21 were Rs 2,042.23 billion, up 23.8 percent year over year, driven by strong tractors volume growth. EBITDA for the quarter rose 88 percent year over year to Rs 362.89 billion, while the EBITDA margin for the quarter was 17.8 percent. The PAT for the quarter was 286.42 rupees, up 85 percent year over year.
The tractor volume rose in December 2020 by 25.7 percent to 31,562 units compared to 25,109 units in the corresponding period of the previous year.
During the early morning session on Thursday, the Escort stock traded 1.3 percent higher at 1,347.95 rupees from the previous closing price of 1,330.10 rupees at BSE.