Escorts gains 3 per cent on resuming operations

Escorts, a leader in the agricultural machinery segment, informed the bourses that the company has received permission from government authorities to resume its operations.

With this permission, the company has resumed its operations at the plant located in Faridabad (Haryana), which has been non-operational since March 22.

This plant shutdown has also affected its sales business for the month of April 2020. The sales were impacted by the nationwide lockdown, resulting in the closure of dealerships in most of the areas.

Majority of the sales were generated in the last few days of April after the exemption of the sale of agricultural machinery was announced by Union Government on April 20.

The company posted 86.6 per cent YoY decline in the total sales of April. Domestic tractor sales also registered a massive decline of 87.7 per cent in the month of April 2020 with only 613 tractors being sold, as against 4,986 tractors in April 2019. Export sales also registered a sharp decline of 66.9 per cent with 92 tractors being sold, as against 278 tractors sold in April 2019.

In today’s trading session, the stock of Escorts Limited opened at Rs 718 and jumped by three per cent and made an intraday high of Rs 737.40 on BSE.