NewKerala.com

VST Tillers Tractors Q4 Profit Plunges 80% on Heavy Investment Losses

VST Tillers Tractors reported an 80% year-on-year decline in Q4 net profit to Rs 5 crore, primarily due to a steep fair value loss on investments. Revenue from operations rose 9% to Rs 329 crore, while EBITDA fell 16.4% to Rs 47 crore but margin improved to 14.3%. The company recorded a fair value loss of Rs 33.74 crore in the quarter, significantly higher than the previous year. The board recommended a final dividend of Rs 25 per share and approved the re-appointment of Dr. Nandakumar Jairam as an independent director.

Key Points: VST Tillers Tractors Q4 Profit Down 80% on Investment Losses

  • Profit slumps 80% to Rs 5 crore due to Rs 33.74 crore fair value loss
  • Revenue rises 9% YoY to Rs 329 crore
  • EBITDA margin improves to 14.3% from 13.4%
  • Board recommends Rs 25 per share dividend for FY26
2 min read

VST Tillers Tractors' Q4 profit slumps 80 pc on higher investment losses

VST Tillers Tractors Q4 net profit falls 80% to Rs 5 crore due to fair value loss on investments. Revenue rises 9% YoY; board recommends Rs 25 dividend.

"The company posted a net profit of Rs 5 crore for the March quarter compared with Rs 24.5 crore in the corresponding quarter - VST Tillers Tractors stock exchange filing"

Mumbai, May 15

VST Tillers Tractors on Friday reported a sharp 80 per cent year-on-year decline in net profit for the fourth quarter ended March 31, primarily due to a steep fair value loss on investments during the period.

The company posted a net profit of Rs 5 crore for the March quarter compared with Rs 24.5 crore in the corresponding quarter of the previous financial year (Q4 FY25), according to its stock exchange filing.

Despite the sharp decline in profit, revenue from operations rose 9 per cent year-on-year (YoY) to Rs 329 crore from Rs 301.4 crore in the year-ago period.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 16.4 per cent to Rs 47 crore from Rs 49.3 crore in the same quarter last fiscal.

However, the company's EBITDA margin improved to 14.3 per cent from 13.4 per cent a year ago, as per its regulatory filing.

VST Tillers Tractors said it recognised a fair value loss on investments amounting to Rs 33.74 crore during the quarter, significantly higher than the Rs 3.85 crore loss recorded in the March quarter of FY25.

For the full financial year FY26, the company reported a fair value loss of Rs 6.78 crore compared with a gain of Rs 24.69 crore in the previous fiscal.

The board of directors has recommended a final dividend of Rs 25 per equity share with a face value of Rs 10 each for FY26.

The proposed dividend is subject to approval by shareholders at the company's upcoming annual general meeting, after which the payout will be processed.

The company also approved the re-appointment of Dr. Nandakumar Jairam as an independent director for a second consecutive five-year term beginning June 21, 2026, subject to shareholder approval.

Following the earnings announcement, shares of VST Tillers Tractors ended lower on Friday. The stock closed at Rs 4,725 on the National Stock Exchange of India, down Rs 151.50 or 3.11 per cent from the previous close.

- IANS

Share this article:

Reader Comments

A
Arun Y
These investment losses are a classic case of not sticking to your knitting. Tractors should be about tractors, not playing the stock market. At least revenue is up but margins need more work.
P
Priya S
Disappointing numbers but the dividend of Rs 25 per share is a silver lining for long-term holders. I hope the board explains the investment strategy more clearly in the AGM.
V
Venkatesh M
Yaar, Rs 33 crore fair value loss in just one quarter - that's massive! And the stock fell 3% too. Let's see if they recover in FY27. At least EBITDA margin improved slightly.
N
Neha E
Some critical points: management should not be taking such large investment risks with company funds. The core tractor business seems stable with 9% revenue growth, but this non-operating loss is unacceptable.
S
Suresh O
Re-appointing Dr. Nandakumar Jairam as independent director for another term is a positive step. Need stable leadership to navigate these choppy waters. Hope the Q1 performance is better.
K
Kavya N
Farming sector needs reliable tractor manufacturers like VST. This quarterly blip shouldn't overshadow the long-term prospects. The dividend shows confidence. Let's see how they handle investments going forward.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50