V.S.T Tillers Tractors Limited — PPTs, 29-05-2025: Investor Presentation

1. Financial Highlights:

VST Tillers’ revenue rose moderately to Rs 994 Cr in FY25 from Rs 968 Cr in FY24. Operational EBITDA margin eased to 11.8% from 12.3%, while PAT margin remained stable near 9%. Power Weeder and Power Reaper volumes surged 63% and 22% YoY respectively, offset by a 16% decline in tractor exports. Net working capital is well-managed with focused receivables reduction. Operating cash flow stayed strong at Rs 275 Cr, supporting liquidity.

2. Strategic Initiatives & Growth Drivers:

The company is expanding its small farm machinery range with new Power Weeder variants and electric Power Tillers/Weeders. Upgrades to Classic and Series 9 tractors domestically and a plan for a global product platform by FY27 are key growth drivers. Technology upgrades under Project Rock and Eagle plus capacity expansion in HHP tractors and rural distribution strengthen the business foundation.

3. Business Developments:

New distributor appointments increased 56%, boosting market reach. International footprint widened with entries into Cyprus, Czech Republic, Russia, Angola, Turkey, and Mali. Precision Component Division’s external business grew 71%, exploring China +1 sourcing. A US product launch is planned for FY27, highlighting global expansion.

4. Market Position & Competitive Advantage:

VST Tillers leads in compact tractors, scaling volumes of VST Zetor and HHP tractors. Strength in small farm equipment and precision components differentiates the company. Focus on profitable dealer models, inventory turns, and margin control supports resilience amid economic uncertainty.

5. Investor Implications:

Positive growth potential emerges from a solid product pipeline and global market expansion, with Q1 FY26 revenue growth expected at 20–30% and EBITDA margins of 11–13%. Investors should watch execution risks tied to geopolitical factors and new launches, balanced by strong cash flows and strategic tech and capacity investments.