Tractor Industry - Stable Rural Cash Flows To Support Demand, Even As Covid-19 Infections A Concern: ICRA
Farmers transporting wheat husk by tractor travel along a road during a partial lockdown in Uttar Pradesh, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

Tractor Industry - Stable Rural Cash Flows To Support Demand, Even As Covid-19 Infections A Concern: ICRA

Bookmark

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICRA-Tractors Industry Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.