Escorts Kubota Limited reported tractor sales figures for June 2024, showcasing a mixed performance. While overall sales dipped slightly by 2.6% compared to June 2023, domestic sales managed a modest 1% growth. The company sold 9,593 tractors in June 2024, with domestic sales reaching 9,359 units. This indicates a continued positive trend in the domestic market despite a delayed pick-up in the retail season. Encouragingly, the season is expected to extend into July, potentially boosting sales further.
Escorts Kubota attributes this optimism to the well-progressed monsoon season, a crucial factor for India’s agricultural sector. Additionally, the company highlights the positive impact of government support measures, such as the increase in Minimum Support Price (MSP), which incentivizes farmers and strengthens rural purchasing power. However, export sales witnessed a significant decline of 59.7% compared to June 2023, with only 234 tractors sold. This drop might require further analysis by the company to understand the underlying reasons.
| Particulars | June | April – June (3M) | ||||
| FY25 | FY24 | % Change | FY25 | FY24 | % Change | |
| Domestic | 9,359 | 9,270 | 1.00% | 24,759 | 25,226 | -1.90% |
| Export | 234 | 580 | -59.70% | 961 | 1,356 | -29.10% |
| Total | 9,593 | 9,850 | -2.60% | 25,720 | 26,582 | -3.20% |
Despite the overall slight decline, Escorts Kubota remains confident. The positive domestic performance, coupled with the ongoing monsoon and government support, paves the way for potential sales growth in the coming months. Investors will be keen to see if the company can address the export market dip and maintain its overall growth trajectory.
Escorts Kubota’s stock price edged up slightly today, currently trading at Rs 4164.70, a gain of 0.5%. This comes despite a minor dip in overall tractor sales for the company in June 2024. However, the positive performance in the domestic market, fueled by a well-progressed monsoon and government support measures, seems to be keeping investor sentiment afloat.
Escorts, a leading engineering conglomerate in India, has been transforming lives for over seven decades by operating in high-growth sectors such as Agri Machinery, Material Handling, Construction Equipment, and Railway Equipment. The company has earned the trust of millions of customers through product and process innovations. Escorts aims to revolutionize agricultural mechanization, modernize railway technology, and transform Indian construction. Escorts Agri Machinery (EAM) is a leading tractor manufacturer in India, offering tractors from 12 HP to 120 HP under three brands, Farmtrac, Powertrac, and Steeltrac. Escorts Construction Equipment (ECE) is among the world’s largest manufacturers of Pick-and-Carry hydraulic mobile cranes, supporting India’s infrastructure growth. Escorts Railway Equipment Division (RED) manufactures advanced components for modernizing Indian Railways, fostering collaborations and implementing advanced manufacturing practices to bring the best of the world to India.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.
Published on: Jul 1, 2024, 4:52 PM IST
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