Shares of tractor maker Escorts Kubota rose about a percent at open on February 1 as the company posted strong sales growth numbers for January 2023, raising hopes that rural income is improving.
Escorts Kubota said its agri-machinery business – which refers to tractors and other farm equipment – sold 6,649 tractors in January 2023, registering a growth of 16.5 percent as against 5,707 tractors sold in January 2022.
As of 9.20 am, the stock rose 1.46 percent to Rs 2,120 on BSE.
The company in an exchange filing said domestic tractor sales in January 2023 were at 6,235 tractors registering a growth of 22.2 percent as against 5,103 tractors sold in January 2022.
“Crop prices, both in the wholesale market as well as the Minimum Support Prices (MSPs) are better than last year and growth trends are expected to continue during this quarter on the back of positive customer sentiments led by ample finance availability, better rabi sowing and early festive season in the month of March this year," the statement added.
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Export tractor sales in January 2023 was at 414 tractors as against 604 tractors sold in January 2022.
In the 10 month period of April 2022 to January 2023, overall tractor sales were higher by 9.1 percent year on year (YoY). Domestic sales growth in the period was at 9.1 percent and export growth at 9.5 percent.
The stock will also be under focus ahead of the Union Budget as any incentive announced for rural economy that can increase the income of farmers will have direct positive impact on Escorts Kubota.
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