Ever increasing demand for food and serious shortage of man power in farming sector creating challenges as well as opportunities for various participants.Government schemes like food security bill etc.. are expected to add fuel into fire. Increasing productivity using Scientific farming techniques and mechanization of farming activities are the only solution for this serious issue.VST Tiller and Tractor is one company which will benefit from this emerging scenario.Company is India’s largest manufacturer of Power Tillers and other farming equipments.This Bangalore based company having four manufacturing facilities to produce Power Tillers,Mini Tractors,Paddy Transplanters and Diesel Engines.VST having technical collaboration with Mitsubishi Corporation, Japan .Company developed a good marketing network with more than 160 dealers across India .Its products are also exported to countries like Middle East, Russia , Turkey , Korea and Thailand.In power tiller segment company commanding a market share of 45% in India.Supported by robust demand ,company recently increased its production capacity.Company having a strong balance sheet with negligible debt .Even during tough times for agriculture sector company showing good performance by all parameters.In FY 2011-12 , VST Tiller reported a Sales of Rs.528 Cr , net profit ofRs.50 Cr and an EPS of Rs.58 /- . Even in a bad year for entire farming related business due to delayed monsoon ,For the nine month December 2012,company reported a net profit of Rs.33 Cr.VST Tiller is an uninterrupted dividend payer for the past 8 years and declared 90% each in past two years.
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