VST Industries shares fell four percent in trade on January 23 after the tobacco player’s net profit tanked 32 percent for the October-December quarter of the fiscal year 2023-24.
The net profit for the December quarter came in at Rs 53.72 crore, compared to Rs 78.98 crore in the same quarter in FY23.
As of 1.50 pm, VST Industries shares were trading at Rs 3,526.5 on the NSE, lower by 3 percent compared to the previous session’s closing price.
VST Industries reported nearly 6 percent on-year growth in revenue from operations to Rs 468.42 crore for the quarter ended December 2023, compared to Rs 441.93 crore in the corresponding quarter in the previous year.
On January 2, ace investor Radhakishan Damani bought 2.22 lakh shares in the tobacco company, taking his total stake to over 30 percent.
Prior to the block deal, Radhakishan Damani had a 25 percent stake in the cigarette maker, through his investment arm Bright Star Investments. Derive Trading and Resorts Private Limited, where Damani is a director, also has 4.76 percent in the company.
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Over the past six months, shares of the company have fallen 4.3 percent. In comparison, the benchmark index NIfty 50 has given investors returns of around 9.5 percent during the same time period.
VST Industries manufactures and markets cigarettes and also trades in unmanufactured tobacco. The company has two cigarette-making facilities in Hyderabad and has five major brands — Total, Charms, Moment, Special, and Edition — with a direct distribution reach of over 1.1 million outlets.
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