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VST Industries skids after Q2 FY22 PAT falls 10% to Rs 80 cr

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VST Industries declined 2.29% to Rs 3,468.05 after the company's standalone net profit skids 9.78% to Rs 79.88 crore on a 8.61% decline in total revenue from operations to Rs 360.86 crore in Q2 FY22 over Q2 FY21.

On a sequential basis, VST Industries reported a decline of 2% in its gross revenue to Rs 360.80 crore during Q2 September 2021. The operating performance got impacted due to challenging situation after the outbreak of second COVID-19 wave that led to sudden lockdown announcements in various states. As situation continues to improve and the economic activities are get normalized rapidly and lockdown restrictions being lifted significantly, the forthcoming business quarters are expected to see improved operating performance, the company stated.

Aditya Deb Gooptu, the managing director (MD) of VST Industries, said, "The strong sequential recovery indicates that the worst of the pandemic is behind us. Our mid-term growth plans look strong and we are confident that the result in the coming days will reflect the turnaround of the market post pandemic matched by our new launches and geographical expansion."

Among other initiatives, VST Industries has launched a new variant in end-August 2021 under the Total Family called "Total ROYAL TWIST", a kesar and saunf variant. This launch has generated good response from consumers across markets.

"Further, continuing on its objective to reach adult smokers across India by building distribution infrastructure, during the quarter the company made an initial foray into the state of Gujarat. These initiatives underline the emphasis of the company to continuously strengthen its brand portfolio in terms of new launches while focusing on cost control to further strengthen its market performance," the company's press statement added.

VST Industries manufactures and distributes cigarettes and tobacco products.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, October 22 2021. 10:40 IST