Escorts gained 1.56% to Rs 1056.50 after the company's total tractor sales rose 21.1% to 10,851 units in June 2020 over June 2019.
Total tractor sales spurted 64.6% month-on-month (MoM) in June 2020 compared with 6,594 units in May 2020.Escorts' total domestic tractor sales stood at 10,623 units (up 22.8% YoY) and total exports were at 228 units (down 26.9% YoY) in June 2020.
"We have seen unprecedented demand in this month. The industry is expected to grow significantly backed by pent-up demand of the lockdown period, better farmer sentiment due to good monsoon prediction reflected in better than normal Kharif sowing, better rural cash flows owing to record crop output and crop prices, and reasonably good availability of retail finance. The industry growth is widespread with positive growth in almost all markets barring one or two. Our inventory levels, both with the company and with channel have been lowest ever. After necessary permissions, we were able to run our factories in multiple shifts to achieve production at about 90% of the capacity. Supply chain situation, though better than before, continues to remain volatile," the company said in a release.
Shares of Escorts have rallied 76.36% in last three months as against 44.27% rise in the Nifty Auto index.
Escorts reported 9.71% rise in consolidated net profit to Rs 127.73 crore on a 15.97% fall in net sales to Rs 1385.65 crore in Q4 March 2020 over Q4 March 2019
The Escorts Group is an Indian engineering company that operates in the sectors of agri-machinery, construction and material handling equipment, and railway equipment.
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