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Escorts Expects Tractor Industry’s Sales To Grow 20% In First Quarter

Escorts’ CFO Madan gives the industry guidance for the first quarter and the entire FY19. 

A farmer drives a tractor at a wholesale grain market in Rewari, Haryana. (Photographer: Anindito Mukherjee/Bloomberg)
A farmer drives a tractor at a wholesale grain market in Rewari, Haryana. (Photographer: Anindito Mukherjee/Bloomberg)

Tractor maker Escorts Ltd. has said industry sales are likely to grow at 15-20 percent in the three months to June on expectations of a good monsoon.

The sales guidance for the full year, however, is pegged at 9-11 percent, according to Chief Financial Officer Bharat Madan.

“The first quarter will definitely give better growth numbers. Expectation-wise, the industry will grow 15-20 percent in the first quarter,” he told BloombergQuint in an interview. “But overall for the full year, we maintain the guidance of double-digit growth, 9-11 percent looks like a more realistic number for the year.”

Escorts sold 8,325 tractors in May, an increase of 20.9 percent over the year-ago period, according to its exchange filing. The company’s domestic sales rose 19.5 percent year-on-year to 8,087 units last month. Exports jumped 105.2 percent to 238 units during the period.

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