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Escorts reports 21 pc increase in total tractor sales at 10,851 units in June

Farm equipment and engineering major Escorts Ltd on Wednesday reported 21.1 per cent increase in total tractor sales at 10,851 units in June.

The company had sold 8,960 units in the same month last year, Escorts Ltd said in a regulatory filing.

Domestic tractor sales were at 10,623 units in the month under review, as against 8,648 units in the year-ago month, a growth of 22.8 per cent, it added.

Exports during June, however, declined 26.9 per cent at 228 units as compared to 312 units in the year-ago period.

"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 company said.

The industry is witnessing widespread growth in almost all markets barring one or two, it added.

"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 per cent of the capacity," Escorts said.

Supply chain situation, though better than before, continues to remain volatile, it added.