Escorts Kubota shares gain after July sales rise over 3% to 5,769 units in July

The tractor maker had reported total sales of 5,570 tractors in July 2023, according to a business update filed with the stock exchanges by the company.

In the domestic market, tractor sales rose by 3.6% to 5,346 tractors in July 2024 compared to 5,161 tractors sold in July 2023. However, in the previous month of June, domestic tractor sales were marginally up by 1% at 9,359 tractors against 9,270 units sold in June 2023.

“With the monsoon progressing well, continuing Government support including an increase in Minimum Support Price (MSP) and increase in sown area of kharif crop, we anticipate rural demand to improve during the festive months,” Escorts Kubota Ltd stated.

Export tractor sales in July 2024 rose by 3% to 423 tractors compared to 409 units in the same month last year.

In the April-July period of 2024-25, cumulative sales in the domestic market were marginally down at 30,105 units against 30,387 units in the year-ago period.

Exports dropped by 21% year-on-year to 1,384 units in April-July period of 2024-25 compared to 1,765 units in the same period of 2023-24.

Escorts Kubota is a leading tractor maker in the country. The company has diversified business across various different divisions, Agri Machinery Business Division, Construction Equipment Business Division and Railway Equipment Business Division.

Shares of the company gained 1.46% to hit a high of ₹4,234.45 on the NSE. However, the stock pared early gains and traded 0.46% lower at ₹4,154.15 apiece at 11 am.

Escorts Kubota reported total consolidated revenue of ₹8,849.6 crore for 2023-24, up by 5% over the previous year. Its EBITDA margin stood at 13.2% in FY24 as against 9.2% in FY23. Net profit was up by 64.8% YoY at ₹1,049.1 crore.