VST Tillers shares jump 6% on incorporation of US subsidiary

VST Tillers Tractors (VST Tillers) shares rose as much as 5.74 per cent to hit an intraday high of Rs 3,498.80 apiece after the company announced that it has incorporated a step-down subsidiary in the United States.

In an exchange filing, VST Tillers said, “We would like to inform that, VST Americas INC, a Wholly Owned Subsidiary of the Company has on April 25, 2024 incorporated a Limited Liability Company (“LLC”) in the name of VST FIELDTRAC LLC in the United States.”

Set up in 1967 by  VST Group of companies, VST Tillers Tractors primarily focuses on manufacturing and selling power tillers and tractors, along with various agricultural implements. VST Tillers is renowned for its innovative and efficient agricultural machinery solutions, catering to the needs of farmers across India. 

The company announced its March sales data at the beginning of the month. Total sales plunged to 4,823 units in March 2024, from 6,468 units in March 2023.

Power Tillers sales dropped to 4,061 units, from 5,596 units in the same month a year ago. Year-to-date (YTD), it fell to 36,480 units, from 38,247 units in the same period a year ago.

Tractors sales also fell to 762 units in March 2024, from 872 units in March 2023. Meanwhile, year-to-date (YTD), tractor sales dropped 41,868 units, as opposed to 45,122 units in the same period a year ago.

Tractors sales would remain muted in the near term due to the high base, going ahead, said brokerage Anand Rathi in a note.

Financial performance 

VST Tillers’ profit plunged 13 per cent to Rs 17 crore in the December quarter (Q3FY24), from Rs 19.4 crore in the corresponding quarter last year. Revenue from operations also fell, dropping by one-fifth to Rs 170 crore from Rs 214 crore.

The company is yet to fix date for the Board meet to approve and announce the financial results of the January to March quarter. 

The 52-week high of VST Tillers stock is Rs 4,184.25 while its 52-week low is Rs 2,367 per share. 

The market capitalisation of the company is Rs 3,055.63 crore, according to BSE.

At 12:16 PM, shares of VST Tillers were trading 6.08 per cent higher at Rs 3,510 per share.