InvestorQ : How have been the auto numbers for Escorts? After all tractors are doing well?
diksha shah made post

How have been the auto numbers for Escorts? After all tractors are doing well?

Answer
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Dilmini Mercia answered.
2 months ago


Tractor companies have been showing good numbers in the last few months and Escorts has been no exception. In fact, Escorts Ltd is heavily betting on its agricultural division to drive growth in the fiscal year 2020-21. On the one hand, rural India has seen lesser impact of the pandemic. On the other hand, the timely rains and the estimate of August and September rains at 104% of LPA are major positive for rural income and demand.

For Escorts, the agricultural sector accounts for 80% of the top line and the company sees major traction in this line of businss. Escorts had reported 9.5% YOY growth in tractor sales in the month of Jun-20 clearly indicating that traction was coming from rural demand. Even in Jun-20, tractor companies across the board had seen good momentum in sales.