Q4FY22 Result Update - VST Industries - ICICI Direct

VST reported dismal results with 5% cigarette volume de-growth.

- Sales were up 8.8% YoY while cigarettes volumes saw 5% YoY dip
- EBITDA was at Rs. 106.3 crore, up 8.2% YoY, with margins at 35.1%
- Consequent PAT was at Rs. 87.2 crore (up 19.7% YoY)

Key triggers for future price performance

- The company saw 6% cigarette volume growth in FY22 after 10% volume de-growth last year. VST is focusing on brand building through higher ad-spends at point of sale, consumer promotions & product innovation

- High priced cigarettes 'Total' & 'Edition' contributing 45% to volumes. The contribution of high priced cigarettes would continue to rise

- Duties & taxes on cigarettes to remain stable given increasing prevalence of illicit & contraband cigarettes

- Dividend payout is restored at ~70% after two years of lower dividend due to liquidity concerns during Covid-19 disruption

For details, click on the link below: Link to the report

Shares of VST Industries Limited was last trading in BSE at Rs. 3228.85 as compared to the previous close of Rs. 3203.10. The total number of shares traded during the day was 1196 in over 386 trades.

The stock hit an intraday high of Rs. 3280.00 and intraday low of 3206.10. The net turnover during the day was Rs. 3899964.00.

Source : Equity Bulls

Keywords

VSTIndustries INE710A01016 Q4FY22 ResultUpdate ICICIDirect