Escorts sales decline by 2.6 % in May on YOY basis

Escorts Agri Machinery Segment in May 2021 sold 6423 against 6594 tractors sold in May 2020. Domestic tractor sales in May 2021 were at 6158 tractors as against 6454 tractors in May 2020. India is going through some tough times and slowdown in demand is seen due to the impact of COVID-19 in the rural parts impairing movement of customers and smooth operations of our dealerships. The ground situation has somewhat eased in the last few days of the month, and Escorts expect a return to normalcy soon. In the medium term, Escorts Management sees rural sentiment to be strong, on account of all positive macroeconomic factors viz. prediction of a good monsoon, high crop production and better support by the Government on crop prices. Inflation continues unabated and remains a worry. Export tractor sales in May 2021 were at 265 tractors against 140 tractors sold in May 2020, registering a growth of 89.3%. Escorts share price is trading flat today at Rs 1170

The farmers of our country have shown utmost courage and have worked hard during the pandemic ensuring all of us have food on our plates. It is our moral duty to reciprocate to the farming community with actions supporting their well-being. Under a program titled ‘Escorts Covid Kavach’ we have announced several Covid-19 relief measures for our customers, including insurance coverage for hospitalization and home treatment expenses. We hope our collective efforts will help our country overcome this crisis soon.

Escorts Construction Equipment grew by 55 percent in May 2021 Faridabad, June 1st, 202. Escorts Construction Equipment Segment (ECE) in May 2021 sold 155 machines and registered a growth of 55 percent against 100 machines sold in May 2020. The Industry was majorly impacted due second wave of COVID 19 pandemic, health concerns due to ferocious spread, shifting priority to safety of self & family, poor collections & hence availability of liquidity at various levels leading to low lending and local lockdown restrictions in different states, all this has severely impacted on-ground execution of infrastructure work. In the last few days Production is also adversely impacted due to the shortage of certain critical items, including industrial oxygen. Escorts Management says they are watching the on-ground situation closely and believe that like last year, going forward industry may see a pent-up demand post monsoon season led by strong rebound in the road and infra sector fuelled by liquidity infusion by banks and NBFCs. Commodity price rise continues to be a worry.

About Escorts Limited:

Escorts is one of India's leading engineering conglomerates with over seven decades of experience. It has helped accelerate India’s socio-economic development through its presence across the high growth sectors of Agri-machinery, construction & material handling equipment and railway equipment. The company has diversified business into three different segments. Escorts Agri Machinery (EAM), Escorts Construction Equipment (ECE) & Railway Equipment Division (RED). The company is committed to excellence in engineering, innovation in products, development of market-relevant technologies and the highest cost efficiencies to create value for its customers and shareholders.