Escorts Kubota gains as total sales jumps 16% YoY in January

Escorts Kubota rose 1.09% to Rs 2,111.90 after the company's Agri Machinery Segment sold 6,649 tractors in January 2023, registering a growth of 16.5% as compared with 5,707 tractors sold in January 2022.

Domestic tractor sales in December 2022 stood at 6,235 tractors, recording a growth of 22.2% as against 5,103 tractors sold in December 2021.

Retail demand across geographies remained strong. Crop prices, both in the wholesale market as well as the (MSPs) are better than last year and growth are expected to continue during this quarter on the back of positive customer sentiments led by ample finance availability, better rabi sowing and early festive season in the month of March this year, the company said.

Export tractor sales declined 31.5% to 414 units sold in January 2023 from 604 units sold in the same period a year ago.

On quarterly basis, the company's total tractor sales rose 16.5% to 6,649 units in Q3 FY23 from 5,707 units sold in Q3 FY22. Domestic tractor sales jumped 22.2% to 6,235 units while Export tractor sales declined by 31.5% to 414 units in the third quarter as compared to the corresponding quarter previous year.

Escorts Kubota's Construction Equipment Segment in January 2023 sold 452 machines as against 375 machines sold in January 2022, recording a growth of 20.5%.

On the back of robust demand led by increased capital spending by Government on various infra projects including smart cities development and irrigation projects, we expect growth momentum to continue in coming months for material handling and construction machinery. The company stated in press release.

The company's Construction Equipment Segment sold 452 units in the quarter ended 31 January 2023 from 375 units sold during the same period in the previous year, registering a growth of 20.5%.

Escorts Kubota is an engineering conglomerate. The company has diversified business across three different verticals viz., agri machinery, construction equipment & railway equipment division.

The company's consolidated net profit declined 42.9% to Rs 98.83 crore despite of 11.9% jump in net sales to Rs 1,890.80 crore in Q3 FY23 over Q3 FY22.

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