Shares of VST Tillers Tractors Ltd. gained as much as 13 percent on Friday to hit an all-time high of Rs 3,790 after the company announced a pact with a US-based firm to jointly develop electric power tillers and agriculture machinery.

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The company informed bourses that it has entered into a master service agreement with US-based Solectrac Inc. to jointly develop electric power tiller and other agricultural machinery.

VST Tillers Tractors manufactures agricultural multipurpose power tillers and tractors in India. It has three manufacturing plants and 380 dealerships across the country. The company has a presence across 40 countries.

Earlier this month, VST Tillers Tractors announced the launch of Series 9 tractors in the range of 18.5HP to 36HP in India.

Soletrac is the leading electric tractor manufacturers in the United States. The company has experience of 26 years in designing and engineering electric tractors.

No details on the quantum of the agreement or monetary contribution have been shared.

VST Tillers is optimistic on the growth trends. The company said that its tractor segment is looking at a 10-15 percent growth, while the power tillers business is looking at a 15-20 percent growth.

The management also maintained its margin guidance of 11-13 percent for financial year 2024. It has over 75 percent market share in India for power tillers.

VST Tillers Tractors reported a turnover of Rs 246 crore during the first quarter of financial year 2024, which was the highest ever revenue for the company in a June quarter.

Shares of VST Tillers are trading 10.2 percent higher at Rs 3,664.05. The stock has gained nearly 60 percent so far on a year-to-date basis.

First Published:Aug 25, 2023 1:05 PM IST