- 01 Nov 2022
- ICICIdirect Research
VST Tiller reports healthy Q2FY23 performance
VSTTILLERS - 4274 Change: 58.85 (1.40 %)News:
Net sales for the quarter came in at Rs 234 crore, flat YoY, QoQ amid power tiller sales volume of 8,819 units (up 2% YoY) and tractor sales volume of 1,688 units (down 27% YoY). EBITDA for the quarter came in at Rs 32 crore. Corresponding EBITDA margins were at 13.8%, down 240 bps YoY but recovering meaningfully from 7.2% levels reported in Q1FY23. PAT in Q2FY23 was at Rs22.7 crore, down 29% YoY. On the b/s front, the company did witness adverse working capital cycle leading to negative CFO generation (H1FY23)
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The management guided for improved volume performance in H2FY23 vs. H1FY23 amid a slew of new launches in the higher hp tractor segment domestically. It is also working towards its broader aim to clock ~Rs 3,000 crore sales by FY26E vs. ~Rs 1,000 crore levels in FY23E. Given the debt free cash rich nature of b/s and interesting technology tie-ups in the recent past, the stock trades at inexpensive valuation of ~17x P/E on FY24E basis
Impact:
Positive