Escorts Kubota Announces Tractor Price Hike, Effective from June
Based on the official statement, the extent of the price adjustment will vary depending on factors such as tractor models, variants, and regional considerations.
Escorts Kubota's Agri Machinery Business Division has revealed its decision to implement a price hike for its tractors, set to take effect from June 2023. The company's move aims to counter the impact of escalating costs.
Based on the official statement from Escorts Kubota, the extent of the price adjustment will vary depending on factors such as tractor models, variants, and regional considerations.
In recent reports, Escorts observed a decline in its domestic tractor market share during the fourth quarter. There was a year-on-year decrease of 47 basis points, resulting in a market share of 10.90%. This decline can be attributed, at least in part, to unfavorable effects caused by untimely rainfall.
According to reports, Escorts recently announced that its market share in the domestic tractor industry dropped by 47 basis points year-on-year to 10.9 percent in the fourth quarter. The company attributed this decline partly to the adverse effects of unseasonal rains. Escorts anticipate that the first quarter will remain relatively unchanged.
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In April, the company experienced an overall sales decrease of 9.1 percent, with exports witnessing a substantial decline of over 51 percent compared to the previous year.
During the March quarter, Escorts Kubota delivered a performance that surpassed expectations. However, its operating profit declined by 6.2 percent, amounting to Rs 236 crore, while its margin experienced a year-on-year dip of 270 basis points. Kotak Institutional Equities recently highlighted in a brokerage note that to regain its lost market share, the company will need to adopt an aggressive pricing strategy, which may impact margin recovery.
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About Escorts Kubota
Escorts Kubota, a prominent and well-respected manufacturer of top-tier tractors, is widely recognized for its exceptional craftsmanship. Escorts Kubota Ltd, a prominent Indian engineering conglomerate, operates across three diverse segments: Escorts Agri Machinery, Escorts Construction Equipment, and Railway Equipment Division.
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