- 15 May 2023
- ICICI Securities
VST TILLER REPORTS HEALTHY PERFORMANCE IN Q4FY23
VSTTILLERS - 3772 Change: 0.70 (0.02 %)News: Net sales for the quarter came in at Rs 323 crore, up 48% YoY amid power tiller sales volume of 12,813 units (up 38% QoQ) and tractor sales volume of 1,963 units (up 25% YoY). EBITDA for the quarter came in at Rs 55 crore with corresponding EBITDA margins at 16.9%, up 600 bps QoQ vs. the normalised range of 13-14%. PAT in Q4FY23 was at Rs 40.2 crore, up 82% YoY.
Views: The company’s full year performance was marginally ahead of estimates with power tiller sales volume for the year pegged at 38,000 units, up 20% YoY and tractor volumes pegged at 6900 units, down 14% YoY. In the conference call, the management reiterated its commitment to | 3,000 crore sales target by FY26E vs. ~| 1000 crore clocked in FY23; primarily banking upon its foray into higher HP tractor, electric tractor, farm implements among others. In the near term, it also guided for margins to be in the range of 11-13%. The company is now trading at ~24x PE on an FY23 basis.
Impact: Positive