VST Tillers and Tractors limited

Stock Opportunities Not-so-Hidden Gems
275

Q3FY22 Concall notes

  1. Reduction in EBITDA is due to reduction in other income.

  2. Unit Sales:

    Units Power Tillers Tractors
    Q3FY22 7139 2043
    Q3FY21 6734 2433

  3. Overall market for Power Tillers looks good but tractor industry is affected in short term.

  4. Question by Analyst: “Mahindra announced CODE to replace power tilers”

    1. Answer: Currently it does not have any subsidiary. Plus it has limited application but as of now there is no big threat. Still power tiller demand is there.

  5. Rs.1 financing is similar to consumer goods financing

  6. Making payment at all dealership digital.

    1. Currently 85 and plans to 300-400 in next two months.
      1. Power tiler dealers: 554
      2. Tractors dealers: 325

  7. Commodity inflation continues to be issue but we are able to maintain it and that is why Operational EBITDA is not down.

    1. There will be price in Q4.

  8. Capacity for Higher HP tractor is set and getting good response and expecting 1000+ units this year.

  9. 3.5-4% of power tiler are being bought on Power Tilers.

    1. Target is to make it reach 10%

  10. There are new product launches coming up few months.

  11. For this financial year the company will achieve above 20% growth and positive to achieve the target.

  12. 140% growth in exports so far this year.

  13. Capex: Rs.45cr for this years

  14. “Tractor for hire” or “Subscription based model” are not that profit models as of now.

  15. No decision yet on the land parcel they have.

3 Likes