Mahindra & Mahindra Farm Equipment Sector (FES) reported 43,201 domestic tractor sales in September 2024, registering a year on year growth of 3%. Similarly, Escorts Kubota saw a 5.7% growth with 11,985 units sold in the same month.
This uptick in the sales is a result of an increase in rainfall in September, supporting the growth of kharif crops, and recovery of groundwater levels across the country.
“On the back of a good kharif crop and likely strong rabi crop, rural sentiments are positive. With positive terms of trade for farmers and upcoming festivals, we expect robust demand for tractors going forward,” said Hemant Sikka, President, Farm Equipment Sector, Mahindra & Mahindra Ltd.
“Monsoon rainfall has seen an increase of 7.5% over LPA and this has helped increase in kharif sowing of all crops except cotton. Reservoir levels have recovered very well and are now at 13% higher than LPA, which augurs very well for a bumper rabi crop,” Sikka said.
Sharp fall in exports of tractors
Though sales of tractors rose, the number of exports declined. M&M saw a decline of 10% with 1,055 units exported this month, and those of Escorts Kubota dipped by 47.1% with 395 tractors exported. The six month exports of Escorts Kubota also fell by 24.7% at 2,188 units.
Total sales increased
M&M sold a total of 44,256 units, increasing from 43,210 units in the same month, last year. Escorts Kubota, too, saw a rise in units sold with 12,380 tractors, from 12,081 in the same month last year.
Share performance
At 4.00 pm on Tuesday, shares of Escorts Kubota Ltd were trading at Rs 4,196.90, lower by 1.69% on BSE. Those of M&M Ltd. were trading at Rs 3,164.85, seeing a rise of 2.22%.