On Road Price
Mahindra farm equipment sector (FES) reported an 18% yoy decline (up 111% mom) in tractor sales (domestic + exports) in September 2018. FES sold 37,581 tractors in September 2018 against 45,788 tractors in September 2017 and 17,785 tractors in August 2018. The number was below the BloombergQuint poll estimate of 38,500 tractors for the month.
Domestic volume declined 19% yoy (up 120% mom) to 35,953 tractors, while exports gained 4% yoy (15% mom) to 1,628 tractors. Tractor sales could remain under pressure as rainfall distribution has been uneven in India this monsoon season. Further, the floods in Kerala have dented a significant part of demand during the season.