Escorts Kubota Tractor Sales Face Challenges Due to Monsoon in March 2024, Construction Equipment Shows Growth

Escorts Kubota, a famous name in the agricultural machinery sector, reported a decline in tractor sales for March 2024. According to the company's statement, they sold 8,587 tractors during the month, marking a 16.7% decrease compared to the same period last year, where they recorded sales of 10,305 tractors in March 2023.

Domestic Sales Hit:

The company's domestic tractor sales were significantly impacted, standing at 8,054 units for March 2024, down by 16.1% year-on-year from 9,601 tractors sold in March 2023. Escorts Kubota attributed this decline to several factors, including the shift in the Chaitra Navratri festival to April, and erratic monsoon patterns from the previous season, which led to low water reservoir levels. These conditions adversely affected agricultural sentiments, particularly in central and southern regions, resulting in delayed harvesting of rabi crops.

Export Sales Decline:

Export tractor sales also witnessed a decline, with only 533 units sold in March 2024, compared to 704 tractors sold in the same month of the previous year, marking a decrease of 24.3%.

Also Read: Sonalika Leads Tractor Exports, Mahindra & Mahindra Eyes Global Expansion Amidst Domestic Tractor Sales Decline

Domestic Tractor Sales Figures:

MARCH

Particulars	FY24	FY23	%Change
Domestic	8,054	9,601	-16.1%
Export	533	704	-24.3%
Total	8,587	10,305	-16.7%

Q4 (JANUARY-MARCH)

Particulars	FY24	FY23	%Change
Domestic	19,912	23,081	-13.7%
Export	1,341	1,684	-20.4%
Total	21,253	24,765	-14.2%

FY (APRIL-MARCH)

Particulars	FY24	FY23	%Change
Domestic	90,239	95,266	-5.3%
Export	5,619	8,024	-30,0%
Total	95,858	1,03,290	-7.2%

Construction Equipment Business Shows Growth:

Despite the challenges faced in the tractor segment, Escorts Kubota's Construction Equipment Business Division experienced growth. In March 2024, the division sold 662 machines, registering a notable 9.2% increase compared to March 2023, where they sold 606 machines. The company attributed this growth to the ongoing government focus on improving infrastructure, laying a strong foundation for sustained growth in the industry.

Future Outlook:

Escorts Kubota remains optimistic about the future, anticipating stabilization in demand post-elections. The company pointed out early signs indicating an above-average monsoon in FY25, which is expected to positively impact agricultural sentiments and, consequently, tractor sales. Additionally, the government's continued focus on infrastructure development is seen as a driving force for sustained growth in the construction equipment segment.

Also Read: Retail Tractor Sales Report : Indian Tractor Industry Thrives with 11% Growth in February 2024

Financial Performance:

In terms of financial performance, Escorts Kubota's standalone net profit surged by 48.75% to Rs 277.27 crore in Q3 FY24, with a 2.5% increase in revenue from operations to Rs 2,320.35 crore over the same period in FY23.

Escorts Kubota:

Escorts Kubota's core operations revolve around the manufacturing of agricultural tractors, engines tailored for agricultural use, construction machinery, earthmoving equipment, material handling machinery, as well as round and flat tubes, along with heating elements. With a focus on innovation and quality, the company continues to be a significant player in the agricultural and construction machinery sector.

Also Read: Escorts Kubota Tractor Sales Witness Challenges Within the Domestic Market in February 2024