Escorts saw very strong sales growth of 10 percent in tractors in March. Fiscal year 21 actually ended with a sharp increase in tractor sales of 24.1 percent over the course of the year.
Bharat Madan, the company’s group CFO, said in an interview with CNBC-TV18 that demand remains robust and that tractor sales will continue to be strong for the next 6 months.
“The general rural mood is pretty strong. If you look at the harvest that is taking place, most of the harvest is done. Because of the good traction in the countryside, the demand remains strong and robust. We therefore assume that the next 6 months will continue to look strong on the tractor side, ”he said.
However, he said future demand depends on the monsoon distribution. “If you look at the past year, the growth came more from the southern industrial market, which is where the maximum demand comes from, and that’s also because these are the regions that are more dependent on rain for irrigation. We had very good rainfall over the past 2 years, which was close to normal monsoons. So in the future it will all depend on how the monsoon distribution is in the coming season. The first clue is that it will be closer to normal, ”he said.
He also said the rising COVID cases in areas like Maharashtra remain a cause for concern. So far, however, there has been no supply-side impact, he added.
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