“Overall, the macroeconomic factors and farmer sentiments remain positive, resulting in a positive sales trend across most geographies. Going forward, we expect the current momentum to continue in the near term led by normal rainfall forecast, adequate reservoir levels, better liquidity and consumer credit availability,” Escorts Kubota said in a statement.

Tractor exports in May 2023 stood at 463 units, down by 38.6% from 754 units exported in May 2022.

Escorts further informed that the company's Construction Equipment business in May 2023 sold 425 machines, registering a growth of 39.3% as against 305 machines sold in May 2022.

“Growth momentum continues in May 2023 and with Government thrust across all infrastructure sectors and increased capital expenditure outlay proposed for current fiscal, we expect demand to further accelerate for construction equipment post monsoon season,” the company stated.

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 reported 8.26% decline in standalone net profit to Rs 185.47 crore despite a 16.76% rise in revenue from operations to Rs 2,182.95 crore in Q4 FY23 over Q4 FY22.

The scrip rose 0.54% to currently trade at Rs 2,184.80 on the BSE.