Farm machinery and construction equipment major Escorts on Friday reported a 25.6 per cent decline in total tractor sales at 8,816 units in September.

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The company had sold a total of 11,851 units in the same month last year, Escorts said in a regulatory filing.

Domestic tractor sales last month stood at 7,975 units as against 11,453 units in September 2020, down 30.4 per cent, it added.

Exports, however, jumped over two-fold at 841 units as against 398 units in the year-ago month, the company said.

"With record monsoon activity in September, this year's rainfall deficit has largely been recovered, which augurs well for industry in the upcoming months. However, above normal rainfall in September has delayed harvesting in some parts of the country resulting in a two-to-four-week delay in the onset of the festive season demand," Escorts Ltd said.

All other macroeconomic factors remain favourable. Inflation in various commodity prices continues to be an area of concern in the short term, it added.

In the construction equipment segment, the company said it sold 400 machines against 369 machines in September 2020 registering a growth of 8.4 per cent.

Retail enquiries for construction equipment have seen significant rise month on month, but continuing rains during the month led to deferment of buying decisions by majority of the customers, the company said.

"However, we anticipate strong equipment demand in the second half of FY22 starting from October 2021 in line with the trend seen during last fiscal. The demand is also likely to get a boost from government push on infrastructure projects. However, the risk of further inflation in the commodity prices remains a concern," the filing added.