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VST Industries: Same story continues... - Views on News from Equitymaster
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VST Industries: Same story continues...
Nov 23, 2015

VST Industries declared results for the quarter ended September 2015. The company's net revenues came in flat, while profits were down by 16% YoY. Here is our analysis of the results:

Performance summary

  • Net revenues remain flat.
  • Operating profits decline by a fifth as margins contract 23.4% from 29% a year ago.
  • Net profits decline by 16% YoY led by a poor operating performance.
  • During 1HFY16, revenues, operating profits and net profits decline by 6% YoY, 23% YoY and 23% YoY respectively.

Financial performance summary

(Rs m) 2QFY15 2QFY16 Change 1HFY15 1HFY16 Change
Gross sales 4,101 4,957 20.9% 8,064 9,687 20.1%
Excise duty 2,073 2,924 41.1% 3,907 5,753 47.2%
Excise rate 50.5% 59.0%   48.5% 59.4%  
Net sales 2,029 2,033 0.2% 4,156 3,934 -5.3%
Other operating income 18 12 -32.4% 31 25 -19.7%
Total revenues 2,047 2,045 -0.1% 4,188 3,959 -5.5%
Expenditure 1,454 1,567 7.7% 2,901 2,974 2.5%
Operating profit (EBITDA) 593 479 -19.3% 1,287 985 -23.4%
EBITDA margin (%) 29.0% 23.4%   30.7% 24.9%  
Other income 58 63 9.7% 88 113 28.1%
Interest 0 0   0 0  
Depreciation 78 69 -11.9% 153 150 -1.8%
Profit before tax 572 473 -17.4% 1,222 948 -22.4%
Tax 193 155 -19.6% 411 321 -21.8%
Profit after tax/(loss) 380 318 -16.2% 812 627 -22.7%
Net profit margin (%) 18.5% 15.5%   19.4% 15.8%  
No. of shares (m)         15  
Diluted earnings per share (Rs)*         86.6  
Price to earnings ratio (x)         19.5  

*trailing twelve month earnings

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