Tractor Industry - Stable Rural Cash Flows To Support Demand, Even As Covid-19 Infections A Concern: ICRA
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ICRA Research Report
Tractor sales remained robust in FY21 with the industry touching all-time high of ~ nine lakh domestic industry volumes.
Even as the spread of pandemic to rural area remains a concern, industry volumes are expected to remain healthy, aided by healthy rural cash flows.
Given the high base, growth is expected to remain at modest levels(1-4% forecast for FY2022).
We continue to maintain a stable outlook for the industry with financial performance for most tractor original equipment manufacturers expected to remain at healthy levels; credit profiles to remain healthy driven by low debt, healthy cash and liquid investments, coupled with limited investment plans.
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