VST Tillers Tractors drops 4.58% in two days

VST Tillers Tractors lost 2.14% to Rs 1,367.85 at 13:26 IST on BSE, with the stock extending Wednesday's fall triggered by the company's management deciding to restrict the production at Bangalore and Hosur plants.

Meanwhile, the BSE Sensex was down 24.65 points, or 0.09%, to 27,189.57

On BSE, so far 52,058 shares were traded in the counter, compared with an average volume of 5,410 shares in the past one quarter.

The stock hit a high of Rs 1,386.75 and low of Rs 1,315 so far during the day. The stock hit a record high of Rs 1,998 on 4 July 2014. The stock hit a 52-week low of Rs 638 on 31 December 2013.

The stock had outperformed the market over the past one month till 24 December 2014, rising 0.1% compared with Sensex's 4.53% fall. The scrip, however, underperformed the market in past one quarter, sliding 13.77% as against Sensex's 1.73% rise.

The small-cap company has an equity capital of Rs 8.64 crore. Face value per share is Rs 10.

VST Tillers Tractors said that due to various reasons, the sale of power tillers and tractors has not kept pace with the plant production since October 2014 which has resulted in carrying higher finished goods inventory. As the situation is not likely to improve in near future, the management has decided to restrict the production to days a week both at Bangalore and Hosur plants, VST Tillers Tractors said. Any change will be appropriately informed, the company said. The company made the announcement during market hours on Wednesday, 24 December 2014, when the stock fell 2.49% to settle at Rs 1,397.80. The stock dropped 4.58% in two trading days from a recent high of Rs 1,433.55 on 23 December 2014.

Net profit of VST Tillers Tractors rose 4.1% to Rs 18.83 crore on 3.2% fall in net sales to Rs 147.31 crore in Q2 September 2014 over Q2 September 2013.

VST Tillers Tractors manufactures power tillers, tractors, paddy transplanters and diesel engines.

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