VST Tillers Tractors tanks 6% on sluggish Q4 earnings; net profit drops

Shares of VST Tillers Tractors fell 6 per cent at Rs 3,222 a piece on the BSE in Friday’s intraday trade. The stock prices dipped after the company reported a sluggish quarter four earnings of the financial year 2023-24 (Q4FY24). 

The stock had hit a 52-week high of Rs 4,184.25 on November 17, 2023, while it hit a 52 week low of Rs 2,449.45 on May 11, 2023. The stock has declined by over 11 per cent year to date, while it has moved up by 33 per cent in the last one year. 

However, the recent dip came after VST Tillers Tractors Ltd reported a 13.4 per cent year on year (YoY) decline in net profit to Rs 34.8 crore for Q4FY24 on Thursday, compared to Rs 40.2 crore in the corresponding period. 

Revenue from operations also decreased by 15.3 per cent to Rs 273.4 crore from Rs 322.6 crore in the previous fiscal's corresponding quarter. EBITDA fell by 27 per cent to Rs 39.8 crore from Rs 54.5 crore Y-o-Y, with the EBITDA margin at 14.6 per cent versus 16.7 per cent in the previous year's fourth quarter. 

The board proposed a final dividend of Rs 20 per equity share of Rs 10 each, subject to shareholder approval at the annual general meeting.

Bengaluru based VST Tillers Tractors is one of the leading manufacturers of power tillers in India. The company sells the tillers to farmers across the country. These power tillers are designed to efficiently operate in both wet and dry fields. 

At 09:56 AM; the stock of the company was trading 4.5 per cent lower at Rs 3276.95 per share on the BSE. By comparison, the S&P BSE Sensex was up 0.57 per cent at 72919 levels. The stock of the company is presently trading at a price to earnings multiple of 22 times.