Margin improvement, better product mix puts Escorts in a sweet spot
Escort’s tractor volume grew by 4.4% to 42,591 units in the six months to September 2020. It needs to maintain a monthly average sales volume of 9,000 units to be able to post at least 10% growth for the full year.
This is one of the highest margins for the company's tractor division in any quarter.
ET Intelligence Group: The stock of tractor maker Escorts has gained 80% over the past six months, outperforming the country’s largest tractor maker Mahindra & Mahindra, which gained 67% during the period. While the tractor segment is expected to benefit from the rising rural income and good monsoon, Escorts looks poised to outperform considering a strong margin improvement, capacity expansion, and better product mix amid rising