Shares of VST Industries experienced a decline of over 2 percent on October 18, reacting to the company’s Q2FY24 financial results which showcased a significant setback. The Hyderabad-based cigarette manufacturer reported a substantial 17.6 percent year-on-year decline in net profit, with figures plummeting to Rs 75.95 crore.
The lackluster performance was attributed to sluggish growth in topline and reduced pre-tax profit and other incomes.
In terms of revenue, the company observed a mild uptick, with a 2.86 percent increase in operations, bringing the total to Rs 452.3 crore. However, the earnings before interest, taxes, depreciation, and amortization (EBITDA) painted a less favorable picture, dropping by 16.1 percent YoY to Rs 78 crore in Q2FY24, as opposed to Rs 92 crore the previous year.
Consequently, the margins for the quarter ending September FY24 plummeted to 17.2 percent, a significant decline from the previous year’s 21 percent.
As of 12:02 pm, VST Industries stock was trading at Rs 3,312.85 on the NSE, marking a 2.10 percent fall.
