VST Tillers Tractors Limited , a key player in the agricultural machinery sector, has provided insights into its financial targets and production outlook during a recent conference call. The company's management expressed optimism about achieving its revenue goals ahead of schedule, while also sharing production targets for its tractor segment.

Revenue Target in Sight

The management of VST Tillers Tractors affirmed that reaching their INR 2,000 crore revenue target could be accomplished faster than initially planned, contingent on stable market conditions. This statement reflects the company's confidence in its growth trajectory and market position.

Tractor Production Guidance

For the fiscal year 2025-26, VST Tillers Tractors has set its sights on a significant production milestone:

This production guidance for tractors indicates the company's plans to expand its manufacturing capabilities and market presence.

Cautious Optimism on Revenue Projections

While the company remains positive about its growth prospects, the management has adopted a more measured approach to providing specific revenue projections. This cautious stance stems from past experiences with market uncertainties. However, the management did indicate that if conditions remain normal, they expect to continue growing at a pace faster than previously anticipated.

Financial Performance Highlights

The company's recent financial results underscore its market position:

These figures demonstrate VST Tillers Tractors' ability to maintain growth momentum.

Segment-wise Performance

The company reported growth across various product segments:

The significant growth in power weeders and reapers suggests diversification of the company's product portfolio and expanding market reach.

VST Tillers Tractors' focus on achieving its revenue targets, coupled with its production guidance for tractors, indicates the company's commitment to growth in the agricultural machinery sector. As the company navigates market dynamics, its cautious yet optimistic approach to financial projections reflects a balanced strategy for expansion.

Investors and market observers will likely keep a close watch on VST Tillers Tractors' performance in the coming quarters, particularly its progress towards the INR 2,000 crore revenue milestone and its ability to meet the projected tractor production targets.

VST Tillers Tractors , a leading manufacturer of agricultural machinery, has reported record-breaking financial results for the second quarter (Q2) and first half (H1) of the fiscal year.

Record-Breaking Turnover

VST Tillers Tractors achieved its highest-ever Q2 turnover of Rs 315.00 crores, compared to Rs 283.00 crores in the previous year, marking a significant 11.31% growth. The company also recorded its highest ever H1 turnover of Rs 598.00 crores versus Rs 474.00 crores, representing a 26.16% increase year-on-year.

Strong Product Performance

• Power Tillers: Sales showed strong performance with 43% growth in H1, selling 24,829 units compared to 17,325 units in the previous year.
• Tractors: The domestic tractor business grew 10% year-on-year.
• Power Weeders: Sales increased 42% to 4,970 units against 3,490 units last year.
• Power Reapers: Sales surged 140% in Q2 and 139% in H1.

Financial Highlights

• Cash Generation: The company improved cash generation from operations to Rs 62.50 crores against Rs 52.10 crores.
• EBITDA Margin: Operational EBITDA margin stood at 13.1% for Q2 and 13.2% for H1.
• PAT: Profit After Tax, excluding fair value adjustments, reached Rs 44.90 crores for Q2 and Rs 70.00 crores for H1.

Awards and Partnerships

VST Tillers Tractors received several accolades and formed a strategic partnership:

• Machinist Super Shop Floor Award
• Gold Award in Kaizen Competition
• Signed an MOU with Tamil Nadu Agricultural University (TNAU) to promote small farm mechanization

These results demonstrate VST Tillers Tractors' strong market position and growth in the agricultural machinery sector. The company's focus on diversifying its product range and improving operational efficiency appears to be yielding positive results, as evidenced by the record-breaking turnover and improved cash generation. The strategic partnership with TNAU also positions the company well for future growth in small farm mechanization.