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Despite challenges from drought and elections, VST Tillers Tractors Ltd reported a Rs 22.85 crore net profit for Q1 FY2024.
VST Tillers Tractors Limited (VST), a pioneer in India's farm equipment sector, has announced its financial results for the quarter ended June 30, 2024. The company reported a net profit of Rs 22.85 crore, reflecting 10.78% of the total income for the quarter.
For the first quarter of FY2024, VST's turnover stood at Rs 190.59 crore, compared to Rs 246.14 crore in the corresponding quarter of the previous year. This decline was primarily attributed to drought conditions in key markets and the impact of general elections across India. The profit before tax (PBT) was Rs 27.94 crore, down from Rs 42.59 crore in the same period last year.
The reduction in turnover directly impacted VST’s profitability, with the net profit margin dropping slightly from 12.48% in Q1 FY2023 to 10.78% in Q1 FY2024. Despite these challenges, the company remains resilient, continuing to drive farm mechanization in India.
Established in 1967 by the VST Group of Companies, VST Tillers Tractors Ltd has a rich legacy of over 55 years in the farm equipment industry. The company is renowned for being the largest Indian manufacturer of tillers and 4WD compact tractors. VST also produces a wide range of tractors, engines, transmissions, power reapers, and precision components.
In addition to serving the Indian market, VST exports its products to various international markets, including Europe, Asia, and Africa. The company continues to innovate and expand its product offerings, contributing significantly to the empowerment of Indian farmers through advanced mechanization.
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Despite a challenging quarter, VST Tillers Tractors Ltd remains a key player in the farm equipment sector, with a strong focus on innovation and farmer empowerment. The company’s continued commitment to quality and expansion into global markets ensures its leadership position in the industry.