Shares of Escorts moved higher by 10% to Rs 688 on the BSE after the company reported a healthy 28.8% year-on-year (Y-o-Y) growth in total tractor sales at 13,140 units in the month of October. It had sold 10,205 tractors in October 2017.
The company's tractor sales stood at 21,039 units during the second quarter (July-September) of the current fiscal witnessing a growth of 3.3%.
The company said the long-term growth fundamentals of domestic tractor industry are strong with lowering of the replacement cycle, but the pace of the central and state governments' policy roll out would govern the short-term industry performance.
Meanwhile, the tractor and construction equipment maker reported 32.5 % rise in its standalone profit at Rs 1,027 million in the second quarter ending September 30, 2018 (Q2FY19). It had posted profit of Rs 776 million for Q2FY18.
Revenue from operations during the quarter under review grew 15% at Rs 13.98 billion as against Rs 12.12 billion in the corresponding period last fiscal.
Since June, Escorts had underperformed the market by falling 33%, as compared to 2.5% decline in the S&P BSE Sensex till Wednesday. The stock hit a 52-week low of Rs 543 on October 8, 2018 in intra-day trade.
At 01:52 pm, Escorts was trading 8.5% higher at Rs 679 on the BSE, against 0.09% rise in the benchmark index. The trading volumes on the counter more than doubled with a combined 4.71 million equity shares changed hands on the BSE and NSE so far.