VST Industries Q3 Review - Tactical Trade Promotions Lift Volumes: Centrum Broking

VST Industries Q3 Review - Tactical Trade Promotions Lift Volumes: Centrum Broking

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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.'s reported Q3 FY22 revenues in-line with our estimates; grew 14.5% to Rs 2.9 billion backed by strong 15% volume growth. The gross margin declined 179 basis points to 53.1% due to rise in tactical trade discounts and promotions focused to driving consumer awareness for Total brand.

Ebitda margin declined 163 bpa YoY to 33.1%, as employee cost declined 1.9%, though other expenses increased 29.9% due to higher marketing expenses.

VST Industries' management indicated that mid-term growth look stronger due to-

  1. recovery in north markets,

  2. focus on premium brand positioning,

  3. December 2021 volumes back to pre-Covid-19 levels and

  4. Total brand continue to be strong.

Click on the attachment to read the full report:

Centrum VST Industries - Q3FY22 Result Update.pdf
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This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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