Farm machinery and construction equipment major Escorts Ltd on Wednesday reported a 30 per cent decline in total tractor sales at 7,116 units in November 2021.
The company had sold 10,165 units in the same month last year, Escorts said in a regulatory filing.
Domestic tractor sales were down 32.8 per cent at 6,492 units last month, as compared to 9,662 units in November 2020, it added.
However, exports were up 24.1 per cent at 624 units in November, as against 503 units in the year-ago month, the company said.
”Delayed harvest of Kharif crops owing to late monsoon rains this year affected the rural cash flows and hence the retail demand. This we believe is a temporary phenomenon and cash flows should start improving soon as Kharif harvest gets fully monetised,” Escorts said.
Industry wholesale in November was further impacted by post-season channel destocking, it added.
On the outlook, the company said, ”going forward all macroeconomic factors remain in favour of the tractor industry. However, high inflation remains a worry impacting profitability.” PTI