VST Industries posted better-than-expected Q4FY15 results exceeding our expectations on all fronts with net sales witnessing 15.3% YoY growth to Rs 218 crore (I-direct estimate: Rs 173.2 crore)
A major reason behind this was aggressive price hikes after two consecutive excise duty hikes in the 64 mm category & higher sales in tobacco exports. Volumes were dismal with 7% de-growth in Q4FY15 as well as for FY15. Tobacco exports stand at Rs 68 crore for the quarter and Rs 256 crore for FY15. Revenue contribution from the 64 mm category remains at ~67% in Q4FY15
Operating margin witnessed a contraction of 426 bps mainly due to excessive excise duty hikes for two consecutive years. This resulted in a decline in net profit by 21.6% YoY to Rs 40.7 crore
"Though the steep increase in excise duty for
For all recommendations, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
