Attended the Agm , key takeaways
First quarter results were tepid because of :-
2). general elections , this caused some confusion and delays related to government subsidy plus restrictions on cash movements had some impact.
Monsoons have picked up but so far not broadbased in terms of coverage like last year . Some areas have drought and some have floods .sales lost in first quarter may not be recouped as purchases are likely to be deferred till next year / season even if monsoon situation improves substantially.
Last year was exceptional as everything like monsoon ,prompt disbursal of subsidy by states fell in to place at the right time
Company doesn't expect big growth this year , maybe 10% growth is best case scenario .
Rice transplanter sales have doubled in the last year . These are imported from China and assembled locally by vst . Though transplanters are subsidized now, Company doesn't expect big growth in this segment as these are difficult sell.Farmers are not keen to invest in it as it's usage is seasonal -only for period of one or two months in a year during planting season . Usually one guy buys and rents it out to the entire village.
Competition increasing as big players like mahindra, sonalika are also targeting the tractor segment which company operates in.
Company will increase advertising and marketing in next six months with media campaigns to increase visibility of company's tractors. No details on ad budget etc
Disclosure : mostly exited last month on price run up and monsoon uncertainty. Small tracking position.