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Escorts Agri Machinery (EAM), a division of Escorts Kubota, will increase the prices of its tractors from November 16. The company aims to offset the effects of cost inflation in both commodities and other costs with the price rise.

Without sharing details about the exact amount, the company said that the increase will vary between models and variants.

Also Read: Mahindra & Mahindra differs from competition on tractor industry growth

Escorts Kubota saw weak performance during the September quarter with its operating profit declining 33 percent from last year to Rs 153 crore while the margin dipped to single digits, witnessing a decline of 450 basis points from the same period last year.

In an interaction with CNBC-TV18 earlier this month, group CFO Bharat Madan mentioned that the margin has hit the bottom for the company and they will take at least 4-5 quarters to return to normal levels.

Through these price hikes, the company aims to get back to a double-digit margin.

The stock is currently trading at Rs 2,016.65, up 0.19 percent.

Also Read: After losing market share for a year, this $3 billion tractor giant is on the mend

(Edited by : Rukmani Krishna)