Escorts Kubota registers 11% YoY decline in December tractor sales

Escorts Kubota said its agri machinery division sold 5,472 tractors in December, down 11% year-on-year. Domestic sales fell by 12.5% to 5,016 units while exports recorded a slight increase to 456 units from 405 units in the year-ago period.

For the third quarter that ended December, Escorts Kubota posted a 4.5% on-year growth in total tractor sales to 32,556 units. Domestic sales rose 6% to 31,585 units, while exports declined 29.2% to 971 units.

In the April-November period, the company’s tractor sales declined marginally by 0.8% on year to 88,921 units. Domestic sales increased slightly by 0.5% to 85,762 units. Exports dropped by 26.2% to 3,159 units.

Going forward, the company noted that it expects demand to increase on the back of kharif procurement, robust rabi sowing and enhanced water levels in reservoirs.

On the construction equipment side, Escorts Kubota sold 873 machines, recording its highest-ever sales with 10% growth on year during December. The volume was down 0.9% during the second quarter at 1,989 units, while for the nine months, construction equipment volume fell 8.1% to 4,765 units.

Escorts Kubota expects favourable trend in the construction equipment segment demand as capital expenditure by the government is likely to gain further momentum this year.

Agricultural equipment accounts for about 73% of the company’s revenue while construction equipment and the railway business contribute around 18% and 9%, respectively.

Recently, Escorts Kubota announced the sale of its railway business to auto component maker Sona Comstar as it looks to streamline operations with a sharper focus on what it believes it can do best - core customer-driven sectors of agriculture and construction.

READ MORE: Railway business was too volatile for us, says Escorts Kubota CFO