Antony Cherukara, chief executive officer (CEO) of VST Tillers Tractors, on Wednesday, said that many dealerships closed as the second wave of COVID-19 impacted rural India during the months of April and May. “However, the demand is back now and all the major demand drivers are looking good for the tractor industry,” he said.
VST Tillers Tractors reported very strong earnings for the March-ended quarter. Revenue jumped 62.5 percent, led by strong growth in both the power tiller and tractor segment. The company turned profitable in Q4.
Speaking in an interview with CNBC-TV18, Cherukara said, “June was good. In April-May, we were in the midst of the second wave of COVID and had troubles because of the lockdown in various districts. This time, the COVID infection spread to rural India as well, affecting many of our dealerships, which were closed due to that.”
Cherukara also added that they weren’t considering much subsidy to come in due to COVID.
On price hike, Cherukara said, “We took about 4 percent hike in Q4. The inflation continues and we are closely watching it. As of now, we have not decided for any further increase, but if the commodity prices keep rising, we will have to look at another one in the coming quarter.”
“The commodity inflation has been at about 8-9 percent and the increase we have taken on price is about 5 percent. So, there is a 3 percent gap and we are working towards nullifying it through cost reduction exercises and projects that we have rolled out. However, there would be a marginal decrease in margins, considering the continuing inflation,” he said.
For the entire management interview, watch the video.