The tractor industry is expected to grow at a flat or marginal rate. Escorts' Bharat Madan Kubota Madan said that

 The tractor industry is expected to grow at a flat or marginal rate. Escorts' Bharat Madan Kubota Madan said that 

the construction industry is expanding remarkably and is expected to rise by 40–50% thanks to government spending on infrastructure.

Madan forecasted that the sector would either expand or decrease by about two percent, or stay flat, noting that the move of the Christmas season to October and November has affected demand patterns.

In the third quarter of the current fiscal year, Bharat Madan, full-time director and chief financial officer of Escorts Kubota, predicted "flat or marginal" improvement in the tractor business.

Madan gave his prediction for tractor volumes in the second half of the year in an interview with CNBC-TV18. He predicted that the sector would either expand or decrease by over two percent, or stay flat, noting that the moving of the holiday season to October and November has affected demand patterns.

"The holiday season has moved to October and November this year, so even while October has been a little quieter than usual due to the change in the season, November seems to be better than it was last year. Thus, depending on how the second final quarter plays out, we anticipate that the industry will either expand by plus or minus two percent this year, or it will be about flat overall, according to Madan.

Madan went on to say that he anticipates the sector to witness marginal growth in the third and fourth quarters of about two to three percent.

"We anticipate marginal increase of two to three percent in the next quarter. Additionally, Q4 growth figures will most likely be comparable. Although the first half of this year has been less successful than the second, Madan believes that the latter part of the year will see a minor improvement.

The CFO said that although the second quarter is the weakest in terms of revenue, strong production figures guarantee excellent margins when discussing the potential for margin growth. Additionally, Madan said that he anticipates the margins to increase even higher, to around 13 to 14 percent annually.

The second quarter is the weakest quarter with relatively modest sales volume and excellent production figures, so that's why you see a bit higher margin—we anticipate the margin to rise. Overall, we anticipate that the margin in this company will be between 13 and 14 percent for the whole year, which is undoubtedly better than it was in the second quarter "added Madan.

Speaking about the demand patterns in the construction industry, Madan predicted that the industry would increase by 40 to 50 percent thanks to government spending on infrastructure. The industry is already seeing spectacular development.

"Construction equipment is growing well. The government has allocated a significant amount of capital expenditure for infrastructure this year, and as a result, we are seeing growth in the company of between 40 and 50 percent at this point. For construction equipment, the second half of the year is often a favorable time of year. We believe that demand for H2 will also continue in the same manner, maintaining the same velocity, according to Madan.

Additionally, Madan said that there's a possibility that modifications to the emission standards might lead to "pre-buying" in the last quarter of this year.

Additionally, it's possible that this segment's emission norms may alter starting on April 1. In the event that it does, pre-buying will also take place, as shown by events that occurred in the last quarter of this year, according to Madan.

Speaking about the railway company Escorts Kubota, Madan discussed how the company's expansion may not be reflected in a shift in the execution speed.

"Based on our first half-year performance, I believe we have generated over Rs 500 crore in revenue for this business." Similar results are anticipated for the second half. The order book number may not reflect that kind of growth due of the recent rise in execution rate. The firm has grown by more than 40–45 percent, therefore it is evident that order execution is moving more quickly now, according to Madan.

Madan said, "Over the next six to eight months, the company will be competent to execute the current order book."