BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Centrum Broking Report
VST Industries Ltd. reported lower than estimated margins in Q1 FY22.
Net revenue grew 12.1% to Rs 2.8 billion, driven by 35% volume growth. Yet, gross margin contracted 676 basis point to 55.3% due to higher impact of excise rates.
VST Industires' Ebitda margin contracted 706bp y-o-y to 33.3%, as employee cost increased 9.9% and other expenses went up 18.1%.
Management sounded challenging market conditions due to intermittent lockdowns in its key states, resulting in restricted mobility and lower out-of-home consumption.
Further, leaf tobacco export was flat y-o-y. Nevertheless, we expect the new Managing Director (strong marketing background) to provide growth strategy to improve revenues and expand distribution footprint.
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