Bengaluru-based VST Tillers Tractors expects revenue growth of around 20% this year despite the challenges in the tractors business due to the deficient rainfall in certain parts of the country. The revenue growth target is based on strong growth in all other verticals.

Antony Cherukara, the Chief Executive Officer of the farm equipment maker is hopeful the growth will accelerate in the coming years if the monsoon pans out as anticipated.

“From the growth projection of 10-15%, we are looking at lower single-digit growth or flattish growth this year for tractors,” he noted. However, other segments such as power tillers will continue to grow at projected rates of 15-20%, aiding overall growth.

Also Read | VST Tillers Tractors unveils 3 new tractors at AGRITECHNICA 2023 in Germany

Cherukara retained the FY26 revenue guidance at ₹3,000 crore.

Also Read | Religare open offer will happen sooner than later, says Mohit Burman

The company reported a solid September quarter with profit at ₹36.45 crore versus ₹22.74 crore last year. The revenue grew to ₹278.51 crore from ₹234.15 crore. The EBITDA (earnings before interest, tax, depreciation, and amortisation) margin improved to 19.5% from 16.7% in the corresponding quarter last year.

Shares of the company have gained nearly 11% over the past month compared to Nifty 50 gains of a little over 1%.

VST Tillers Tractors has a market capitalisation of ₹3,458 crore and competes with companies such as Escorts Kubota and HMT.

For more, watch the accompanying video

(Edited by : Shweta Mungre)