Excellent Results, Margin has improved. Hitesh ji do the owners of quarterly results review. Thanks for the wonderful pick. Stock is up 9 % 
Q3FY14 Q3Fy13 %Change
Sales 160Cr 122Cr 31%
Net Profit 21Cr 12Cr 75%
Margins have improved tremendously.
9 Months EPS is 67. Considering 23EPs for Q4Fy14. It comes at 100EPS FY14
. Which is 8PE
Going forward may see more upside with good January sales figures.
I meant honours :P.
Sunil Can you shares Jan Sales data? Is it released?
67 + 23 = 90 not 100.
Jan sales figures… where do you get them from???
VST Tillers results for q3 fy 14 have been a positive surprise to say the least…
I dont know why management put up the cautionary note along with q2 results.
Coming to 9M results eps is 67 per share.
Last quarter is usually the best quarter… they recover most of the outstanding subsidies…So a century seems almost a certainty.
On eps of 100 per share VST tillers can fetch PE range of around 10 times…So a price of 1000 could be achieved if the eps figures of 100 are achieved. Optimistic range is a PE or around 12 or so…targets accordingly.
Interesting thing is fy 15… There it will have full impact of new tractor manufacturing facility. And tractors have higher margins and lesser of subsidy problems. So FY 15 could also see very decent growth.
To me it looks a good story to play for next 1-2 years… If growth continues and management hikes div payout ratio, there could be some serious re rating.
disc: invested.
[quote="hitesh2710, post:85, topic:896909798"]
> To me it looks a good story to play for next 1-2 years.. If growth continues and management hikes div payout ratio, there could be some serious re rating.
>
> disc: invested.
[/quote]
Here is the breakup of sales qty for last few qtrs:
| Narration | Jun-12 | Sep-12 | Dec-12 | Mar-13 | Jun-13 | Sep-13 | Dec-13 |
| Power tillers | 6053 | 3717 | 5505 | 6802 | 6947 | 6427 | |
| tractors | 1709 | 1160 | 1415 | 1726 | 1647 | 2172 |
This qtr they have done well due to pickup in tractor segment...if it continues...its a very good thing for the co.
Ayush
thanks ayush for the details.
tractor is the next growth and margin driver for vst tillers as mentioned before.
dec qtr shows a hefty increase in sales of tractors.
We need to find out whether new plant has gone on stream or not.
Hitesh Bhai,
As per ICRA’s report
http://www.icra.in/Files/Reports/Rationale/V.S.T.%20Tillers%20Tractors_r_03022014.pdf, the new tractor facility is expected to be commissioned by April, 2014.
Ashwini from the forum reached out to VST investor relations team.
They have replied saying, that new plant hasn’t started yet. They will inform the exchanges once production starts in the new plant.
Article in today’s Eco Times
The Co. is sitting on large amounts of surplus cash. About 100 Crs as on Sept 30. Another 35-40 crores in the second half will be added to the kitty. With capex already in place, this cash appears to be surplus. A buy back or maybe a large dividend could be a possibility.
VST’s tractor sales in January are up 31% y-o-y. Source is Crisil data.
V.S.T Tillers Tractors Limited has informed the Exchange that the commercial production as well as sales at the Company’'s Hosur Tractor Plant will commence from March 27, 2014.
thanks gyan for the info. It should be good news. FY 15 in all likelihood should be a great year for the company.
Yes Hitesh Bhai,
In the article shared by @Rajeev, Management makes Some interesting points.
a. The installed capacity of tractors will go up to 36,000 units in the next three years from 12,000 now.
b. “We are targeting tractor sales volume of 7,000 units in FY14 and 12,000 units in FY15 and our focus in three years will on 0-20 HP category in tractors,” said VN Mahendra, managing director of VST Tillers Tractors. It means that management is targeting almost 70% growth in tractor sale next year.
c. In the power tiller segment, the company expects a volume growth of 20-25 per cent.
If we put all this together, company is expecting huge growth in sales next year. Let us hope that they are able to do what they are promising.
Another interesting fact to note : With no planned capex, and good cash reserve on hand, the management might reward shareholders, and there can be a chance of dividend/bonus.
This can lead to good re-rating of the stock.
VST Tillers currently, has a lot going for it. Capacity expansion in place & the focus shifting from tillers to tractors, it could take off from here. The stock has doubled in the last 6 months & from it’s cmp of abt 900, could easily double again in the next 12-18 months, given the earnings visibility going forward & a very strong balance sheet.
Attaching an article that appeared in the Forbes a few months ago on International Tractors Ltd., that make tractors under “Sonalika” brand. The industry seems to be doing well.
Disc: VST Tillers forms a part of my core portfolio & I continue to add every week!
http://www.sparkcapital.in/pdf/updates/VST%20Tillers_Company%20Update%20Sep2013.pdf
alittleoldbutworthalook
disc.invested