VST Industries (509966) Q4 02/03 earnings summary

Executive summary

• FY ended 31 Mar 2003 net profit rose to Rs.3,823.99 lakh from Rs.3,697.68 lakh; the turnaround continued as prior losses from Foods and Financial Services were nearly bridged.

• Focus remained on the core tobacco business, brand investment, distribution, operational efficiency and exports.

Financial highlights

• Net sales were Rs.28,144.23 lakh versus Rs.27,821.62 lakh; gross sales were Rs.66,742.70 lakh versus Rs.67,997.44 lakh.

• Profit before tax rose to Rs.6,753.06 lakh from Rs.5,836.63 lakh; profit after tax was Rs.3,823.99 lakh versus Rs.3,697.68 lakh.

• Basic and diluted EPS increased to Rs.24.76 from Rs.23.77; proposed ordinary dividend was Rs.5.50 per share, a 55% rate.

• Consolidated net sales were Rs.33,131.11 lakh and consolidated profit after tax was Rs.3,732.52 lakh; consolidated EPS was Rs.24.17.

Outlook and guidance

• Plans included further brand launches, product improvements and value additions, alongside strengthening trade marketing and distribution personnel.

• Strategy remained to build the brand portfolio across segments, expand regional distribution and sustain the core-business focus.

• The Tobacco Bill was expected to be enacted in the near term, potentially restricting advertising and distribution; VAT implementation in 2003-04 could materially affect operations.