Escorts’ April Tractor sales slips 43% after record March sales

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Biznextindia : Escorts Ltd Agri Machinery Segment (EAM) has reported 889.9 per cent growth in its April sales at 6979. The massive growth is mainly due to minimal sales of 705 tractors in April 2020, the first month of the lockdown.

On month-on-month basis, the tractor sales has dropped by 43 per cent from 12,337 units in March 2021.

Domestic tractor sales in April 2021 were at 6,386 tractors registering a growth of 941.8 percent against 613 tractors in April 2020.

On month-on-month (MoM) basis, domestic tractor sales has dropped by 45 per cent from 11,730 units in March 2021.

The company’s export tractor sales in April 2021 was at 593 tractors against 92 tractors sold in April 2020, registering a growth of 544.6%.

“The demand in April last year was drastically impacted by Covid-19 national lockdown; so was it in April 2021 although not to the same extent. This time around supply chain had minimal impact from local restrictions owing to the second wave of Covid-19. This enabled the Company to build some inventory in anticipation of some pent-up demand as the pandemic situation improves” said Escorts in a regulatory filing.

However, the company is hopeful of demand recovery in the medium-term due to improved macroeconomic factors.

“The medium-term macroeconomic factors remain positive on account of record rabi harvest, sustained crop prices, and good prediction of monsoons this year. Inflation continues unabated and remains a worry” the company said.

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