The domestic tractor sales in April 2022 stood at 7,676 units, registering a growth of 20.2% as against 6,386 tractors sold in April 2021. Escorts said it expects next two months to witness strong retail sales on the back of ongoing harvesting in many states, better crop price realization as against Minimum Support Price (MSP), prediction of normal monsoon with likelihood of good rainfall in June and July leading to possible timely sowing this year. The company has taken a price increase in April 22 but inflation pressure on the commodity prices continues to remain a key area of concern.

Meanwhile, export tractor sales in April 2022 were at 649 tractors in April 2022 as against 593 tractors sold in April 2021, registering a growth of 9.4% year on year.

Escorts' construction equipment segment (ECE) in April 2022 sold 340 machines registering a growth of 79.9% as compared to 189 machines sold in April 2021. Escorts said, in April 2022 construction equipment industry witnessed continued challenge on retail demand due to cost escalation across all segments.

The company further assured that it expects good recovery in current fiscal year 2022-23 on the backdrop of government thrust on infrastructure and export potential in emerging markets. Continued inflation in input costs leading to higher owning cost for customers remains a key cause of concern, Escorts added.

The Escorts Group is an Indian engineering company that operates in the sectors of agri-machinery, construction and material handling equipment, and railway equipment.

Escorts' consolidated net profit dropped 32.36% to Rs 193.71 crore on a 2.83% decline in revenue from operations to Rs 1,984.28 crore in Q3 FY22 over Q3 FY21.

Shares of Escorts were trading 0.94% lower at Rs 1620.05 on BSE.