Farm and construction equipment's manufacturer Escorts Ltd has reported a net profit of Rs.16 crore for the second quarter ended September 30. The company had reported a loss of Rs.8 crore in the corresponding quarter last year.
Net sales of the company were also down 19 per cent to Rs.798 crore during the quarter against Rs.986 crore in the July-September last year.
Sales down
The company recorded tractor sales of 11,438 units during quarter against 15,013 units in same period last year.
“The tractor industry has been adversely impacted by the poor and uneven monsoon. The impact of poor monsoons has been accentuated by the cyclical nature of the industry,” Rajan Nanda, Chairman, Escorts, said.
There is farm distress that is getting reflected in the overall industry recording steep drop in tractor sales though there are indications that the second half will show better results, he said.
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