Published - 15 Apr 2018 by Tractor Junction
Escorts Limited, one of the India’s leading tractor manufacturers, has once again hit the mark! The sales figures of the giant in March 2018 are reported 11557, much more than its competitor brand Sonalika (10255). Big congratulations to Escorts for an extraordinarily unexpected performance! It sold 11557 tractors in March 2018 in the domestic markets against 7014 tractors in the previous year. Export sales of the company were up by 3.6x. Export figures are reported 233 tractors this year against 65 tractors in March 2017. The total sales, including imports and exports of Escorts in the month of March 2018 were up by 67% yoy. It sold 80,417 tractors in the FY18 much ahead of the low figures in the previous year, depicting a growth of around 26% yoy.
Escort tractor sales are mounting for the past several months on account of 2 successive years of improved crop production, satisfactory monsoon, hassle-free financing and growing usage of tractors in non-agri sectors. Escorts have amazingly beaten Sonalika with rising sales of 67%, one of its major competitors reporting 56% growth. About 20% of tractors are used for non-agriculture use. Drive on roads and highways development as seen in Bharatmala project would also play a key role in enhancing tonnage of tractor segment and the major players within the sector.
For Q3FY18, Escorts derived striking revenue figures from different sectors: Construction equipment – 15%, Agri-machinery – 79% and Railway equipment – 6%. On the back of product mix and cost-control measures, Escorts have seen a consistent improvement in tractor margins, reporting 5% higher growth in Q3FY18, more than that of the last year. Its CE products include backhoe loaders, cranes and compactors. The tractor cycle is expected to remain favorable in India for the coming years too.
New launches, innovation, higher traction in construction equipment and geographical penetration in the tractor segment will drive around 12% revenue CAGR over FY18-20E. The current Market Cap of Escorts Limited is Rs. 10,031.33 Cr.
Hopefully, the company will be adopting measures to enable farmers enhance their prosperity and show unexpected performance in future too!
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