Mahindra & Mahindra's Farm Equipment Sector (FES) is set to clock its best-ever fiscal year sales in FY2023, both for the domestic market, and for combined domestic and export sales.

As per the latest sales numbers released, in February 2023, M&M FES registered domestic market wholesales of 24,619 units, up 30% (February 2022: 18,910) and exports of 1,172 units, down 23% (February 2022: 1,527). With the resilient domestic market proving a buffer to inclement export demand, combined sales of 24,619 units last month constitute 26% year-on-year growth (February 2022: 20,437).

Commenting on the performance, Hemant Sikka, President - Farm Equipment Sector, M&M said, “Record Rabi crop acreage for wheat and oilseeds, high crop prices and better terms of trade for farmers is leading to positive sentiments in the rural markets. Expected higher Rabi output will improve liquidity in the hands of the farmers, supporting tractor demand. Water reservoir levels continue to remain high.”

Between April 2022-February 2023, combined domestic and export sales are a record 372,531 units; India sales at 355,909 units are already a new high for a fiscal year. 

Set to tractor past 400,000 sales in FY2023

A close look at M&M FES’ sales numbers for both domestic and export markets reveals that the company is set to scale a new high with combined sales of over 400,000 units in FY2023.

In the first 11 months of the ongoing fiscal year (April 2022-February 2023), it has clocked total combined sales of 372,531 units, a YoY increase of 14.64 (April 2021-February 2022: 324,935). This total is at present 27,469 units shy of the 400,000 milestone. This should be achieved by end-March 2023, given the average monthly sales of 33,866 units in the fiscal to date.

Cumulative 11-month domestic market sales of 355,909 units are a 15% growth versus the year-ago's 308,940 units. And 11-month exports of 16,622 tractors are up 4% year on year. 

In the domestic market, October 2022 was the best month with M&M FES selling 50,539 tractors – it is also the highest monthly sales for the company, beating the previous best of 47,100 units in September 2022. It also helped that both months were festival laden. March 2023, which has Holi, Ugadi and Gudi Padwa, should prove to be another strong month to farm growth. 

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