VST Tillers inks distributorship agreement with ETGL Africa
Shares of VST Tillers Tractors rallied 9% to Rs 2,875.65 on the BSE in intra-day trade on Tuesday, in an otherwise weak market, after the company launched the VST range of tractors and power tillers in Southern Africa.
objective behind the distribution model of VST Tillers Tractors in ETGL’s portfolio is to expand its offering in the industry. The launch introduces the complete range of VST’s tractors and power tillers into the Southern African market.
ETGL, a global conglomerate with expertise across various industries, operates an established automotive and farm equipment distribution business in the Southern African region.
VST Tillers is the largest Indian manufacturer of tillers, 4WD compact tractors and amongst the leading producers of the other category tractors, engines, transmission, power reaper and precision components. It has also entered into strategic alliances with Pubert from France for power weeders and zetor from the Czech Republic for tractors.
Since August 16, in the share price of VST Tillers has soared 52% after the company reported a strong set of numbers for the quarter ended June 2021 (Q1FY22). The company’s profit after tax (PAT) rose 40.7% year-on-year (YoY) at Rs 24.01 crore on the back of 32% YoY jump in turnover at Rs 193.60 crore during the quarter. Earnings before interest, taxes, depreciation and amortization (Ebitda) margin increased to 18.11% from 16.47% in the previous year quarter.
The company plans to expand into newer geographies including Eastern Europe, Africa, Indonesia, and several others. In Europe, the company is growing its brand ‘VST’ through various social media campaigns that increase reach in existing and new markets.
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