Pritika Auto Industries Limited (BSE: 539359) expects a strong growth in demand and production of tractors in the domestic market in the coming quarters.
Backed by a good monsoon, the agriculture sector is expected to report strong growth in the second quarter of FY20. This is further complemented by supportive government policies and initiatives to boost the rural economy and farmers’ income. Consequently, increased farm activity would generate higher demand for tractors in the domestic market.
As per the Tractor Manufacturers Association (TMA), the production and sales of tractors in India grew 16.5% and ~20% year-on-year, respectively, in February 2020. This trend is projected to continue asthe industry is forecast to grow at a CAGR of 8-10% during 2017-22.
Pritika Auto is poised and ready for this expected rise in demand. After a sluggish year, worsened by the COVID-19-induced lockdown in March-April 2020, the Company has further streamlined internal efficiencies. With its capacity and workforce in place, the Company is well positioned to capitalize on the upcoming opportunities, reflected by a robust order book.
Commenting on the market outlook, Mr. Harpreet S. Nibber, Managing Director, Pritika Auto Industries Limited said: “We are excited about the industry scenario going into the second quarter of FY21. After a sluggish period for the automotive sector over the past year, the COVID-19 pandemic had further worsened the economic situation across industries. However, with the economy opening up, we expect an upswing in the overall market scenario.
Backed by a healthy monsoon, the agriculture industry is expected to flourish in the coming months, leading to higher farm activity. This will translate to higher demand for tractors. Support from government policies and initiatives to boost the rural economy would provide additional tailwind.
We, at Pritika, are well positioned to optimally utilize the upcoming opportunities and deliver at capacity. We retained our entire workforce during this lockdown and have had the time to further streamline internal efficiencies. With a buoyant market forecast in sight, we are poised to deliver to the higher demand and expect the benefits to last through the following quarters of FY2021. This has already started reflecting in our robust order book.
I thank all the stakeholders and the entire team of ‘Pritika’ for their untiring efforts, hard work, sincerity and dedication that help us set and achieve higher benchmarks.”, Mr. Harpreet S. Nibber Further added.
