VST Tillers Hopeful Of Better Second Half Amid Festive Fervour, Favourable Monsoon

VST Tillers Tractors Ltd. expects a bounce bank in the business during the second quarter of the financial year-ending March 2025, driven by the upcoming festive season and the positive impact of a favourable monsoon.

Anthony Cherukara, chief executive officer of VST Tillers Tractors, told NDTV Profit that despite a dip in numbers in the first quarter, monsoon has played out normally in the second quarter, leading to a revival of positive sentiment.

“We expect that going forward it will be favourable in H2 as well. Overall, the situation has turned positive, which is already seen in the second quarter and will be seen in the third quarter and the fourth quarter as well,” he said.

After a dip in the first quarter results, VST Tillers Tractors recently reported muted September sales figures. The total sales of power tillers as well as tractors fell to 2,583 units in September 2024 as compared to 2,627 units in September 2023.

Cherukara said that the company operates on a consumption-based model and things are looking up in the festive season.

“The enquiries are good, and the demand is good. In September, we did not see the consumption really picking up, but as the festive season has kicked in and the monsoon was normal, we expect the consumption to pick up in October and November,” the top executive noted.

In the lower horsepower segment of tractors, the company expects sales to improve in H2 after remaining flat during the first half of the year.

“Going forward with the monsoon playing out, particularly where these tractors are used, we expect in Q3 and Q4 the lower HP tractors should do better in these markets. So there will be a positive trend in the second half,” Cherukara said.

Globally, however, rate-cutting cycles and geopolitical tensions will be a cause of concern for the lower horsepower tractor industry, the top executive noted.

VST Tillers Tractors has also entered into the larger horsepower tractor space with its VST Zetor brand. This move will also contribute to the overall growth of the company, according to its CEO.

“With the production getting ramped up, we are expanding into the northern part of India as well, where we were completely absent. This should give us growth in the second half in the higher HP segment as well,” he said.

Shares of VST Tillers Tractors Ltd. closed Friday’s session 2.02% lower at Rs 4,448.95 per share on the NSE against the benchmark Nifty 50’s 0.93% decline to 25,014.60 points.