InvestorQ : How do you see the latest quarterly numbers of VST Ltd?
sarah Leo made post

How do you see the latest quarterly numbers of VST Ltd?

vidhya Laxmi answered.
1 year ago

The shares of Hyderabad based VST Industries rallied 11% on August 04 on the back of sound quarterly results announced for the Jun-20 quarter. VST net profits rose 0.04% to Rs.75.71 crore for the Jun-20 quarter while total net sales fell by 19.4% to Rs.245.39. In an industry like cigarettes that has been badly hit by the pandemic, the performance must be considered relatively appreciable.

VST Industries has acknowledged that the business operations of the cigarette manufacturer were adversely impacted deeply by the disrupted supply chain and fall in consumer demand. While manufacturing operations have gradually started returning to normalcy, VST expects that the lag effect of the pandemic could continue for some more time. VST has a strong presence in lower price point cigarettes of 64 & 69 mm, which is less cyclical.

VST has always catered to the lower end of the market as against ITC and that has allowed them to gain market share. The low end cigarettes were subject to competition from the informal sector but the pandemic is likely to control that challenge substantially. Most brokerages have maintained a positive view on VST with higher price targets.