Escorts Agri Machinery (EAM), a division of Escorts, is planning to increase the prices of its tractors effective 1st July 2021, the company has informed. "The increase in prices would vary across models and variants," Escorts Agri Machinery said.

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It also mentioned that there has been a steady rise in commodity prices necessitating a price hike to offset the impact of the continuing inflation.

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Escorts is an engineering conglomerate with over seven decades of experience. It has its presence across the high growth sectors of agri-machinery, construction and material handling equipment and railway equipment.

The company has diversified its business into three different segments. Escorts Agri Machinery (EAM), Escorts Construction Equipment (ECE) & Railway Equipment Division (RED). 

Escorts reported a standalone profit of Rs 874.1 crore for the year ended March 31, 2021, up by 80.0 per cent, as against a profit of Rs 485.5 crore in the previous year. The standalone profit for the quarter ended March 2021 was up by 93.2 per cent at Rs 271.3 crore, as against Rs 140.4 crore in the corresponding quarter last year. 

In the Escorts Agri Machinery division, tractor volumes were up by 24.1 per cent at 1,06,741 units in the fiscal year 2020-21, as against 86,018 units in the previous year. Segmental revenue came at Rs 5,667.3 crore in the fiscal year 2020-21, up by 27.7 per cent, as against Rs 4,437.6 crore in the previous year. This year's operating leverage, favourable product mix and cost efficiencies, resulted in ever highest EBIT margin at 18.2 per cent in the fiscal year 2020-21, compared to 13 per cent in the previous year. 

For the quarter ended March 2021, tractor sales were at 32,588 units as against 20,108 units in the corresponding period last year. Segmental revenue came at Rs 1,738.8 crore in the quarter ended March 2021, up by 64.3 per cent as against Rs 1,058.4 crore in the corresponding period last year. EBIT margins for the quarter ended March 2021 was at 17 per cent, up by 120 bps, as compared to 15.8 per cent in the corresponding period last year.