Tractor growth, partnership with Japan’s Kubota key triggers for Escorts

A better-than-expected June quarter performance and expectations of steady growth for FY21 led to the 2.2 per cent gain for the Escorts stock. The outperformance was due to a better product mix and lower expenses which resulted in higher realisations and margin expansions.

The gains on the operating front came despite the 14 per cent year-on-year fall in tractor volumes. Agri machinery (tractors) is the largest of the three segments Escorts is in and accounts for 80 per cent of its revenues. Operating profit margins expanded by 130 basis points year-on-year to 11 per cent as compared …