VST reported disappointing results in Q2FY22.
- Sales were down 9.6% YoY, cigarettes volumes de-grew 5% YoY
- EBITDA was at Rs. 104.3 crore, down 7.7% YoY, with margins at 38.4%
- Consequent PAT was at Rs. 79.9 crore (down 9.8% YoY)
Key triggers for future price performance
- With Covid recovery & vaccination drive, mobility to increase by H2FY22. However, cut back in trade discounts could adversely impact volumes
- High priced brands ('Total' & 'Edition') volume contribution to increase in future, which would lead to favourable product mix & margin improvement
- Duties & taxes on cigarettes are expected to remain stable given increasing prevalence of illicit & contraband cigarettes
- We expect dividend payout to increase to ~70% by FY23, which would translate into dividend yield of ~5% at current price
For details, click on the link below: Link to the report
Shares of VST Industries Limited was last trading in BSE at Rs. 3454.00 as compared to the previous close of Rs. 3549.20. The total number of shares traded during the day was 2571 in over 657 trades.
The stock hit an intraday high of Rs. 3583.20 and intraday low of 3442.65. The net turnover during the day was Rs. 8920198.00.