From the Chairman's Desk
Dear Shareholders,
As I step into the role of Chairman, succeeding my father Mr. V. K. Surendra, I am
filled with immense pride and enthusiasm. His legacy of dedication and visionary
leadership has laid a robust foundation for our Company. His unwavering commitment to
excellence has guided us to our current success, and I am honored to continue building on
this legacy with the same passion and integrity.
Our Company, a pioneer in agricultural mechanization, plays a critical role in the
agricultural sector. Agriculture in our country is not just an industry but a lifeline for
millions. The patterns of the monsoon, government policies, and dynamic market conditions
significantly influence our operations. Despite these variables, our resilience and
adaptability have enabled us to achieve remarkable milestones.
Empowering Growth
Our Company has recorded commendable growth and expanded our market presence. Our
financial performance has been particularly strong, with revenue from operations
reachingRs. 968.05 Crores. EBITDA reached 17.96% in FY 2023-24 compared to 14.75% in FY
2022-23, and net profit soared to Rs. 121.51 Crores, one of our highest ever. The EPS
(basic) stands at an impressive Rs. 140.64 per share, marking another record for our
Company. Our operational efficiency is reflected in the improved cash flow from
operations, which reached Rs. 48.61 Crores, surpassing last year's figures.
Tractor exports have been a bright spot for us, with 1,680 units sold, representing one
of the highest ever volume growths in this segment. This success in the international
market underscores the global appeal of our products and the strength of our export
strategy. We have also made significant strategic moves to enhance our product portfolio
and market reach. In the month of May 2024, we launched VST Zetor range of tractors, a
result of our joint venture between VST Tillers Tractors Limited and ZetorTractors a.s.
8< HTC Investments a.s. the holding company of the Zetor brand. Our Power Reapers and
power weeders in the small farm mechanization division have shown significant volume
growth with 37% and 35%, respectively. Electric pumps from the distribution division have
achieved Rs. 10 Crores in revenue in their second year of operations, showing promising
growth.
To maintain a continued cordial relationship and transparency with the Union, the wage
settlement for Hosur and Malur was concluded with higher aspirations
In a move to strengthen our global presence, we incorporated a wholly owned subsidiary,
VST Americas Inc., in the US on April 25, 2024. This strategic initiative aims to cater to
the needs of the US market in the tractor and farm machinery segment, opening up new
growth opportunities for our Company. Additionally, we've established a step-down
subsidiary, VST Fieldtrac LLC, also in the US, further solidifying our presence in the
North American market.
In recent years, we have placed a stronger emphasis on nurturing our most important
asset-our employees-by focusing on talent development and strengthening our leadership
pipeline.
Embracing Change
The future holds exciting prospects for our Company as we embrace change and
innovation. We stand on the brink of a new era in agricultural mechanization, where
technology and sustainability are of paramount importance. The Company is planning a
significant investment of Rs. 100 Crores to establish a global R&D center in a phased
manner. We have already invested Rs. 100 Crores over the past 3-4 years. Our ongoing
investments in research and development will drive us forward, allowing us to introduce
cutting-edge solutions tailored to the evolving needs of farmers. Additionally, we are
focused on expanding our footprint in emerging markets, leveraging our expertise to make a
positive global impact.
Strategic Direction
• Evolve Power Tillers to Small Farm Machines and Going Global
We aim to transform our Power Tillers business into versatile small farm machines
business and expand our presence globally. •
• Leadership in Compact Tractor Segment
Strengthening our position as leaders in the compact tractor market by introducing
innovative and efficient customer focussed models.
• Maximize Capacity Utilization for HHP Tractors
Ensuring optimal use of our high-horsepower (HHP) tractor production capacity to meet
increasing demand.
• Promote Precision Implements
Advancing the adoption of precision farming implements to enhance productivity and
efficiency for our farmers.
• Participate in Technology Evolutions
Actively engaging in the latest technological advancements to stay ahead in the
agricultural mechanization industry.
• Exploring Rural Distribution Opportunities
Expanding our distribution network to tap into rural markets, ensuring our products
reach every corner of the agricultural landscape.
This would not be possible without the dedication of our employees, the loyalty of our
customers, and the trust of our partners. Together, we have built a company synonymous
with quality, innovation, and integrity. I am confident that, with your continued support,
we will reach even greater heights. As we embark on this journey, let us embrace the
challenges and opportunities that lie ahead with a spirit of collaboration and innovation.
Together, we can create a brighter and more prosperous future for our Company and the
agricultural community we serve.
Before I conclude, I extend my heartfelt gratitude to Mr. M. K. Bannerjee and Mr. K. M.
Pai, who have retired from our Board after long and distinguished service. I also extend a
warm welcome to Mr. Ajith Kumar Rai and Mr. Rajen Padukone on the Board of our Company
Thank you for your support and belief in our vision.
Warm regards,
Arun V. Surendra
Chairman