VST Industries (509966) Q4 00/01 earnings summary

Executive summary

• FY ended Mar. 31, 2001 sales turnover rose 1.3% to Rs.755.82 crore despite a 2.1% volume decline; PBT rose to Rs.30.04 crore and PAT to Rs.27.50 crore.

• Recommended ordinary dividend increased to Rs.2.50 per share from Re.1; focus remained on cigarettes, productivity and filter-brand value.

Financial highlights

• Sales were Rs.75,581.75 lakh versus Rs.74,597.55 lakh; PBT was Rs.3,004.33 lakh versus Rs.1,837.81 lakh, and PAT was Rs.2,749.71 lakh versus Rs.1,569.74 lakh.

• Net interest outgo fell to Rs.3.59 crore from Rs.13.83 crore, mainly reflecting improved liquidity and lower interest rates.

• The VRS accounting-policy change charged costs on accrual rather than amortising them, reducing current-year profit by Rs.22.73 crore.

Outlook and guidance

• Expected to consolidate performance in the coming year, continuing core-business focus, productivity improvement and investment in brand equity and portfolio.

• Expected filter-segment growth to continue, while policy dialogue would seek a reversal of excise pressures and practical tobacco regulation.