Moneycontrol
you are here: HomeNewsBusiness
Last Updated : Jul 16, 2018 08:40 PM IST | Source: PTI

Domestic tractor sales expected to grow by 7-9% this fiscal: ICRA

"Even though the demand drivers continue to remain robust, ICRA expects industry growth to moderate in the current fiscal (expected growth of 7-9 percent in the current fiscal), with the domestic volumes already touching a new peak of 7.1 lakhs in the previous fiscal," ICRA said.

Domestic tractors sales are expected to grow in the range of 7-9 percent in the current fiscal, according to ratings agency ICRA. Normal monsoon however, remains critical for sustaining domestic tractor volumes during the financial year, it added.

"Even though the demand drivers continue to remain robust, ICRA expects industry growth to moderate in the current fiscal (expected growth of 7-9 percent in the current fiscal), with the domestic volumes already touching a new peak of 7.1 lakhs in the previous fiscal," ICRA said.

However, as the profitability of OEMS in the tractor industry remains linked to industry demand, the operating margins for the various manufacturers are expected to remain at healthy levels, it added.

While the OEMs are expected to incur capital expenditure towards new product developments and upgradation of existing product portfolio to meet stringent emission norms over the medium term, the credit profile of the entities in the industry are also expected to remain strong, Icra noted.

"Over the long term, ICRA continues to maintain a long term CAGR estimate of 8-9 percent for the industry, with the long-term industry drivers for the industry continuing to remain intact," Icra Vice President and Sector Head, Corporate Ratings, Anupama Arora said.
First Published on Jul 16, 2018 08:10 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant