Shares of this automobile company under the ‘small-cap’ category jumped approximately 5 percent in Friday’s trading session after the company successfully incorporated a step-down subsidiary in the United States of America to cater to the US markets.
With a market capitalization of Rs 2,996.71 crores, the stocks of VST Tillers Tractors Limited opened their trading hour on Friday at Rs 3,303.05 and currently trade at Rs 3,468.60, gaining around 5 percent compared to the previous close of Rs 3,308.95 apiece.
Such bullish share price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), provided key business updates.
The company announced the successful incorporation of “VST FIELDTRAC” as a Limited Liability Company (LLC) by VST Americas Inc., a subsidiary of VST Tillers Tractors Limited, making it a step-down subsidiary of the company.
The step-down subsidiary has been incorporated to cater to various requirements of the US market in the “Tractor” and other “Farm Machinery” segments. The company was incorporated on April 25th, 2024 and it is yet to start its operations.
During the recent financial quarters, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, witnessed a dip in numbers with the former reducing from Rs 279 crores during Q2FY24 to Rs 170 crores during Q3FY24, and the latter, keeping the timeframe the same, shifting down from Rs 36 crores to Rs 17 crores.
According to the latest presentations, the company’s sales volume growth of Smart Farm Machines (SMF) and Tractors, as of Q3FY24, portrayed an increase in “Power Weeders” and “Reapers” by around 70 percent and 80 percent respectively.
On the other hand, the “Power Tillers” and “Tractors” reported negative growth of 32 percent and 36 percent respectively.
Founded in 1967, VST Tillers Tractors Limited is engaged in the manufacturing and trading of agricultural, horticultural machinery, plantation, and other various components.
The company’s product portfolio includes power tillers and tractors, binders, engines, auto components, etc. It mainly operates in India and also exports its products to regions comprising the Netherlands, Africa, Poland, and others.
Written by Amit Madnani
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