VST Tillers reported its Q2FY22 earnings results. Antony Cherukara, CEO of the company, said all the key demand drivers for H2 -- the reservoir levels, MSP, stability in terms of inflation -- look positive. Things look a little more stable than in H1. "So, we are expecting a much better H2 this year,” he said.
VST Tillers reported its Q2FY22 earnings results. Antony Cherukara, CEO of the company, discussed the earnings' fineprint.
“We are expecting a better H2,” he said in an interview with CNBC-TV18.
October had been slow; the company expected a better festival season. However, with reservoirs being full and the minimum support prices (MSPs) seeing an increase, cashflows into farmers’ hands will definitely help the market rise, he said.
“All the key demand drivers for H2 look positive. Whether it is the reservoir levels or whether it is the MSP or about the stability in terms of inflation, it is looking a little more stable than what it was in H1, so we are expecting a much better H2 this year,” he said.
It is the mission of the company to achieve Rs 3,000 crore of revenues by FY25, he said.
The company plans to achieve 20-30 percent growth in the tiller business and 10-15 percent growth in the tractor business.
The company had taken some price increases in Q2FY22. However, the entire commodity price inflation could not be passed on to the consumers. So, the company had to do a lot of better cost management to maintain its margins, he noted.
“We did the price increase of about 3-4 percent in Q2FY22, the commodity inflation was at about 6-8 percent. So there is a gap of about 3-4 percent. That we could cover up through better cost management,” he said.
For the full interview, watch the accompanying video.