Escorts Ltd, a farm machinery and construction equipment company, reported a 30% drop in overall tractor sales to 7,116 units in November 2021.
In the same month last year, Escorts sold 10,165 units, according to a regulatory filing.
Domestic tractor sales were down 32.8 percent last month at 6,492 units, compared to 9,662 units in November 2020, according to the report.
However, exports increased by 24.1% at 624 units in November, up from 503 units the previous month, according to the company.
"The delayed harvest of Kharif crops this year as a result of late monsoon rains hampered rural cash flows and, as a result, retail demand." This, we believe, is a temporary phenomenon and cash flows should start improving shortly as the Kharif harvest is completely monetized," Escorts added.
Post-season channel destocking also hampered industry wholesale in November, according to the report.
On the outlook, the company stated that "moving forward, all macroeconomic factors remain in favour of the tractor industry. “ High inflation, on the other hand, continues to be a source of concern for profitability.
About Escorts Limited:
Escorts Limited is an Indian multinational company that manufactures agricultural machinery, construction equipment, material handling equipment, and railway equipment. The company's headquarters are in Faridabad, Haryana. The firm was founded in 1944 and currently has marketing activities in over 40 countries. Escort produces tractors, automotive components, railway equipment, as well as construction and material handling equipment.
The company operates almost 1200 sales and service outlets. Escorts created India's first private Institute of Farm Mechanisation in Delhi in 1951 and in 1953 Escorts (Agents) Ltd amalgamated with Escorts (Agriculture and Machines) Ltd to become Escorts Agents Pvt. Ltd. In December 1959, the firm was turned into a public limited company, and the name was changed to Escorts Ltd in January 1960.
