December 2021 Tractor sales: Mahindra & Mahindra tractor sales fall 19%, escorts sales fall 39%, VST tillers and tractor sales up 29%

Mahindra & Mahindra Tractors, Escorts Agri Machinery, and VST Tillers & Tractors announced their tractor sales report for the month of December 2021.

Mahindra & Mahindra - Mahindra & Mahindra Limited (M&M) on Saturday saw a 19 percent decline in total tractor sales to 18,269 units in December 2021. The company sold 22,417 units in the same month of 2020, M&M said in a statement. Domestic tractor sales fell 21 percent to 16,687 units from 21,173 units in December 2020. On the other hand, exports grew by 27 percent to 1,582 units in December 2020 from 1,244 units.

Commenting on the performance, Hemant Sikka, M&M President - Agricultural Equipment Sector, said that the decline in December was due to a combination of factors, including the high base last year and the late and very heavy rains in some geographical areas. "We expect good progress in Kharif collection, bringing liquidity into the hands of farmers and gaining momentum in the coming months as it indicates an increase in rabi acreage compared to last year," he said.

Escorts Agri Machinery (EAM) - The Company sold 4,695 tractors in December 2021, down 39.3% year-on-year (YoY) compared to 7,733 tractors sold in December 2020. On a sequential basis, Escorts reported a 34.02% decline in total tractor sales in December 2021 from 7,116 units sold in November 2021. The company's domestic tractor sales fell to 4,080 units in December 2021 and 7,230 units in December 2020. 43.57. % Yo.

"Rural cash flow has started to improve, but last year due to the high base the industry wholesale was affected in the month of December 2021. Going forward, all the macroeconomic factors, including healthy water storage levels, are in favor of the tractor industry, but we have taken the price hike, but rising inflation is a cause for concern, ”the company said in a statement.

The company's tractor exports were 615 tractors in December 2021, registering a growth of 22.3% from 503 tractors sold in December 2020. The company's total sales in December 2021 Q2 fell 19.8% to 25,325 units compared to December 2021 Q2.

Meanwhile, the Escorts Construction Equipment Segment (ECE) sold 377 machines in December 2021, up from 438 machines in December 2020, a decline of 13.9% year on year.

The construction equipment industry is currently facing short-term challenges due to delays in the mobilization of projects and low rental rates for retail customers, the company said. Going forward, with projects in various stages of implementation and new projects being offered by the government, the company expects demand to increase, but the industry may be hurt by recent COVID-19 restrictions. Rising inflation remains alarming.

Escorts reported a 23.7% decline in standalone net profit at Rs 173.47 crore on net sales of Rs 1,673.85 crore.

On Friday, December 31, 2021, Escorts shares fell 0.08% to Rs 1906.35.

VST Tillers & Tractors - Total sales increased by 28.53% to 3,640 units in December 2021 from 2,832 units sold in December 2020.

Periodically, the company's total sales in December 2021 increased by 33.67% from 2,723 units sold in November 2021.

The company's power tiller sales increased by 34.89% to 3,089 units in December 2021 from 2,290 units in December 2020. Total tractor sales in December 2021 were 551 units, 1.66% higher than the 542 units sold on December 20.

VST Tillers & Tractors net profit up 7.4% to Rs. 32.15 crore, an increase of 5.9% on net sales in Q2 FY22 to Rs. 233.46 crore as compared to Q2 FY21.

Shares of VST Tillers & Tractors rose 2.16% to Rs. Ended at 2,765.25. VST Tillers Tractors are engaged in the manufacture of power tillers and tractors.