Escorts Kubota Ltd.'s farm machinery division, Escorts Agri Machinery (EAM), will be increasing the prices of its tractors from November 16, 2022.
The company said that the price hike was to offset the impact of the cost inflation in both commodity and other costs. The increase in prices would vary across models and variants.
In an interaction with CNBC-TV18 on Monday, Group CFO Bharat Madan said that the company gained 70 basis points in market share during the September quarter to cross 11 percent. Escorts Kubota's tractor market share in the first half of the current financial year fell to 9.4 percent from 9.9 percent.
Escorts Kubota saw weak performance during the September quarter with its operating profit declining 33 percent from last year to Rs 153 crore while margin dipped to single-digits, witnessing a decline of 540 basis points from the same period last year.
Although Madan believes that margin has hit the bottom for the company, they will take at least 4-5 quarters to return to normal levels.
Escorts Kubota Ltd is one of India's leading engineering conglomerates with diversified business into three different segments -- Escorts Agri Machinery (EAM), Escorts Construction Equipment (ECE) and Railway Equipment Division (RED).
Shares of Escorts Kubota are trading 1.5% higher at Rs 1,987.
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