VST Tillers, intra day went up almost 4% at Rs.1539.75 and though it has come off that level, it remains firmly in the green, up 3% at Rs.1524 levels.

The company stated that it has signed an agreement with the Karnataka Govt to set up 92 custom hire service centres (CHSC) in nine districts.  The company with a budget of Rs.40 crore is setting up CHSC in a bid to reach out to the farmers of Karnataka, many of whom cannot afford farm machinery. These farm machineries would be provided at a nominal rental charge, helping bring in the much needed mechanization in farming as agriculture labour gets scarce.

VST makes power tillers and the pioneer in compact tractors in India. It has a range of products that includes rice transplanters and self-propelled reapers for small farmers.

The company had ended Q3FY16 with a net profit of Rs.18 crore, up 47% (YoY) on a 42% rise in net sales at Rs.151 crore.  It has also declared an interim dividend of 150% or Rs.15/share (Rs.10 FV) for FY16.