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Tractors manufacturer Escorts Ltd on Wednesday reported 21 per cent decline in its net profit to ₹36 crore in the third quarter ended December 31, 2014 against ₹45 crore in the same period previous year.
Total income also declined by 10 per cent to ₹1,046 crore during the October-December 2014 quarter compared with ₹1,159 crore in the corresponding period in 2013, the company said.
The company said the domestic tractor industry remains flat and the downturn in the tractor industry is expected to continue due to low yield coupled with low crop prices.
Escorts had sold 15,881 tractors during the period against 19,047 in the corresponding quarter ended December 2013.
“The first three quarters have been quite tough for the tractor industry. Looking ahead, the tractor demand is expected to remain subdued in the short-term. However the long-term demand drivers are intact,” Rajan Nanda, Chairman, Escorts, said.
At the same time, construction sector seemed to have turned positive and have shown an uptrend in volume for two continuous quarters, he said.
Shares of Escorts closed at Rs 116.70 on the BSE on Wednesday, up 4.2 per cent from the previous close.
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