You are here » Home » Companies » Company Overview » VST Industries Ltd

VST Industries Ltd.

BSE: 509966 Sector: Consumer
NSE: VSTIND ISIN Code: INE710A01016
BSE 13:56 | 08 Aug 3450.00 40.80
(1.20%)
OPEN

3437.85

HIGH

3450.00

LOW

3410.15

NSE 13:44 | 08 Aug 3454.00 43.95
(1.29%)
OPEN

3410.05

HIGH

3454.95

LOW

3410.00

OPEN 3437.85
PREVIOUS CLOSE 3409.20
VOLUME 135
52-Week high 3893.95
52-Week low 2786.00
P/E 15.81
Mkt Cap.(Rs cr) 5,327
Buy Price 3454.55
Buy Qty 3.00
Sell Price 3460.45
Sell Qty 3.00
OPEN 3437.85
CLOSE 3409.20
VOLUME 135
52-Week high 3893.95
52-Week low 2786.00
P/E 15.81
Mkt Cap.(Rs cr) 5,327
Buy Price 3454.55
Buy Qty 3.00
Sell Price 3460.45
Sell Qty 3.00

VST Industries Ltd. (VSTIND) - Chairman Speech

Company chairman speech

Dear Shareholders

The year 2021-22 witnessed another year of robust performance of yourCompany in the light of several challenges posed by the multiple waves of COVID-19 &its impact on supply chains raw material costs and inflationary pressures emerging outof prevailing geo-political scenario. Our learnings from the first wave of being agile& flexible coupled with prudent risk management helped us deliver yet another goodperformance in 2021-22. As we look forward to the future with optimism I am extremelygrateful to our stakeholders who supported us throughout and continue to place theirimmense trust in us.

Business Performance

Industry witnessed recovery in the second half of FY 2021-22 with thenormalization of business environment. We made significant progress across our strategiclevers in FY 2021-22. Your Company delivered a strong performance across financialparameters reflecting strong business fundamentals and future avenues for growth driven bya robust and diverse innovation led brand portfolio. Our cigarette revenues at Rs 1559Crores were up by 5.9% compared to FY 2020-21. We grew our net comprehensive income to anall-time high of Rs 320 crores. We have strengthened our brand portfolio throughconsiderable investments in consumer relevant innovations. 2 of the Company'strademarks continue to be among the Top 10 brands in the industry.

Trends and Emerging Context

Sustained price stability at convenient price points is drivingindustry recovery even as non-duty paid cigarettes continue to benefit large pricedistortion. Moving forward headwinds on supply and demand side such as high inflationhave the potential to slow the rate of recovery. You company has maintained a strongcorporate culture & demonstrated a performance driven mindset in these challengingtimes. Performance in the last two years gives me enough confidence that the management ofyour company under the able leadership of Mr. Aditya Deb Gooptu is well prepared to steerthrough the current volatilities.

Responsible Business

Your company is committed towards environment sustainability with anobjective of setting an example in business responsibility with thoughtful initiativesgrowth opportunities and infrastructure developments. In the light of this your Companyis making a tangible difference in its operations by setting up a solar plant at itsfactories and corporate office and also in the regions where the Company operates throughits social initiatives. During the year under the VST Swachh Ghar Mission –construction of 1685 Household/School toilets was undertaken followed by creatingawareness on safe hygiene habits; under the ‘VST Cares' Mission – Covidsupport to communities was extended; under the ‘Project Gyandeep' -infrastructure support for 10 schools was provided; and on projects promotingsustainability 400 solar street lights were installed with support from gram-panchayats.

Dividend

The Board is pleased to declare the Company's highest everdividend of Rs 140 per share an impressive increase of 23% over FY 2020-21.

Nurturing Our People

In a dynamic and rapidly evolving business environment with multiplebusiness challenges we strive to provide continuous re-skilling and upskillingopportunities to make our employees ‘future ready'. In addition we providescope for learning and guidance to our people for career advancement while taking care oftheir health and well being. I take pride in acknowledging the efforts of our employeeswhose support to the company has been overwhelming during testing times.

Looking ahead

We have made significant progress in terms of business performancebrand building product from innovation and geographic expansion. Moving forward we arealigning our brand portfolio to changing consumer preferences by creating a robustpipeline of value-added innovative variants. We are also strengthening our brands to drivegrowth with increased investments in consumer facing initiatives. The years ahead willcontinue to pose significant macro level challenges with the potential to impact consumerdisposable income. Your company will be focussed on judicious cost management whilesupporting business growth.

As we progress further VST is cognisant of its responsibility tosociety and environment and we have therefore outlined a bold ambition under the ESGframework. It demonstrates our commitment to the communities we work to serve. The Boardthrough its CSR committee also has strategic oversight over the ESG initiatives. We areglad to share that the 1st Business Responsibility & Sustainability Report(BRSR) forms part of this annual report ahead of the mandatory reporting periodapplicable for the Company. As a responsible corporate citizen we have a strong footprintin Telangana & Andhra Pradesh in the areas of health sanitation environmentsustainability & education. These initiatives cover 98 villages and about 282 schools.

As we embark on yet another exciting & challenging year I want toextend my deepest gratitude to our Board of Directors as well as the entire managementteam for reviewing performance and leading our dedicated team of employees. I lookforward to their continued support in the future. I would also like to thank ourstakeholders including our workers business and supply chain partners farmers andmost importantly you our valued shareholders for continuing to believe in our visionand ability. Thank you

NARESH SETHI

Non-executive Chairman

.