VST Tiller Tractors Q1 Results: Stock jumps 11% after profit nearly doubles, margins expand

Shares of VST Tillers and Tractors Ltd. saw a sharp spike of as much as 11% on Monday, August 11, after it reported strong results for the June quarter.Net profit for the period nearly doubled from last year, increasing by 96.5% to ₹44.2 crore from ₹22.5 crore.

Revenue for the quarter also increased by 48.2% on a year-on-year basis to ₹282.5 crore from ₹190.6 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter rose to ₹37.6 crore from ₹13.4 crore last year, nearly tripling from the base quarter, while margins expanded by over six percentage points to 13.3% from 7% last year.Last week, the company had announced the launch of its FENTM Tractor Series, which means Fuel Efficient and Torque Max. Multiple models were launched ranging from 18.5 to 29 Horse power with two and four-wheel drive options.

Shares of VST Tillers Tractors Ltd. are trading 11% higher at ₹4,977 after the results announcement. The stock has nearly erased its losses for the year after the move on Monday.