VST Industries (509966) Q4 01/02 earnings summary

Executive summary

• FY ended Mar. 31, 2002 PAT rose 34.5% to Rs.36.98 crore despite lower sales and a weak cigarette market, reflecting operating efficiencies and reduced debt costs.

• Directors recommended a final dividend of Rs.4.50 per ordinary share, equivalent to a 45% rate.

Financial highlights

• Sales income fell to Rs.679.97 crore from Rs.755.82 crore; total income was Rs.684.57 crore versus Rs.755.77 crore.

• PBT rose to Rs.58.37 crore from Rs.30.04 crore; PAT was Rs.36.98 crore versus Rs.27.50 crore.

• Net interest expense decreased to Rs.2.72 crore from Rs.3.59 crore; total interest outflow fell to Rs.9.15 crore from Rs.9.66 crore.

• Non-recurring charges included Rs.8.50 crore paid under the Voluntary Retirement Scheme and a Rs.2.34 crore provision for investment-value diminution.

Outlook and guidance

• Priorities are to strengthen the brand portfolio and value proposition, enhance operational efficiency, and consolidate improvements achieved over the preceding three years.

• Continued economic weakness, contraband cigarettes, restrictions on public smoking and advertising, a proposed Tobacco Bill, and state-level taxation were expected to weigh on operations.