Escorts sold 6,979 tractors in April 2021 compared to 705 tractors sold in April 2020.
The company’s Farm Equipment (EAM) segment had domestic sales of 6,386 tractors in April 2021, compared to 613 tractors in April 2020.
Demand last April was dramatically impacted by the national lockdown of COVID-19. so it was in April 2021, if not to the same extent. This time around, the supply chain had minimal impact from local restrictions due to the second wave of COVID-19.
This allowed the company to build up some inventory in anticipation of pent-up demand if the pandemic situation improves. The medium-term macroeconomic factors remain positive due to the record harvest at Rabi, the persistent harvest prices and the good forecast of the monsoons this year. Inflation continues unabated and remains a matter of concern.
Tractor exports were 593 in April 2021, compared to 92 units sold in April 2020.
The company’s Construction Equipment (ECE) segment sold 189 machines in April 2021, compared to 7 machines in April 2020.
Escorts said April 2020 sales were impacted by the COVID-19 lockdown and are not strictly comparable.
The industry has been hard hit due to the massive spike in coronavirus infections across the country. Due to the shortage of certain critical items, including industrial oxygen, production was also impacted during the month. However, with an accelerated vaccination program and other government measures, the situation is likely to improve in the near future.
“Given the government’s push to monetize through divestment and the major projects under the National Infrastructure Pipeline (NIP), we expect the industry to recover more strongly in the future,” the company said in a statement.
Escorts is an engineering conglomerate. The company has diversified its business into three different segments. Escorts Agri Machinery (EAM), Escort Construction Equipment (ECE) and Railway Equipment Division (RED).
The company’s consolidated net income increased 85.1% to Rs.286.71 billion after operating revenue for the third quarter of FY 21 versus the third quarter of FY 20 increased 23.8% to $ 2,042.23 billion. Rupees had risen.
The scrip currently rose 0.04% to Rs 1119.10 at the BSE.
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(This story was not edited by Business Standard staff and is automatically generated from a syndicated feed.)
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