Escorts has moved higher by 3% to Rs 391 on BSE, bouncing back 5% from early morning lows, after the company’s agri machinery segment (EAM) reported a strong 53% year-on-year (YoY) jump in total tractor sales at 8,970 units in October 2016. The company had sold 5,862 tractors in October 2015.
Domestic tractor sales for the month of October 2016 up by 51.9% at 8,859 tractors against 5,832 tractors in October 2015.
Export for the month of October 2016 up by 270% YoY at 111 tractors against 30 tractors in October 2015.
In September 2016, Escorts EAM volumes grew by 37.8% at 7,725 tractors on YoY basis.
“With Normal monsoon, on full year basis tractor industry is expected to grew by 14-16%. The long term growth fundamentals of industry are strong with lowering of the replacement cycle, but the pace of the central & state Government’s policy roll out would govern the short term industry performance,” Escorts said in a statement.
At 12:00 pm, the stock was up 1.6% at Rs 385, after hitting an intra-day low of Rs 373 on BSE. A combined 2.21 million shares changed hands on BSE and NSE so far.