Escorts Ltd. expects tractor sales to remain flat or increase marginally in the ongoing financial year.
“On the tractor front, we are not seeing any major benefit coming in,” Group Financial Controller Bharat Madan told BloombergQuint in an interview. The company will “wait and see” how the competitors behave and pass on the lower input costs to customers, if they do it too, he said.
Escorts sold 13,353 tractors in October, an increase of 1.6 percent from the year-ago period, according to its exchange filing. That, according to Emkay Global, came on account of the festive season, good monsoons and expectations for a better Rabi crop season. The brokerage expects Escorts' domestic tractor volumes to decline 7 percent in 2019-20 and then gradually improve to flat volume growth in 2020-21.
Escorts Q2 Results 2019-20: Key Highlights (Year-on-Year)
- Revenue fell 5 percent year-on-year to Rs 1,320 crore. (Estimate: Rs 1,370 crore)
- Ebitda margin contracted 170 basis points year-on-year to 9.6 percent.
- Tractor volumes fell 6 percent; construction equipment volumes fell 29 percent.
Watch | Escorts' Bharat Madan on the tractor maker's quarterly performance
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