VST Industries Ltd
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BSE Code:
509966
NSE Code:
VSTIND
Business Profile
Business Profile
VST Industries (VST) is engaged in the manufacturing and marketing of cigarettes. It was incorporated in 1930. The company is an affiliate of British American Tobacco (BAT), UK, which holds a 32.16% stake in the company.
The company focuses on manufacturing and marketing cigarettes with interests in investments and mutual funds. The major brands of the company include Charminar, Charminar Special Filter, Charms Mini Kings and Charms Virginia Filter, XL Filter and Shaan. Its products are targeted at the lower end of the market and have dominance in the small-sized (less than 60 mm) micro segment. The company is dependent on ITC for the supply of tobacco. Though the major chunk of revenue comes from sale of cigarettes, it is also in the business of selling non-manufactured and cut tobacco.
The manufacturing facility is located in Secunderabad, Andhra Pradesh. The processing lines have been modernized during the year 2003-2004 by inducting Hauni KT2 Stem Cutter to improve filling values and reduce tobacco wastage. The secondary manufacturing department has also been modernized by incorporating new auto feed systems on individual making machines in order to ensure consistency of the product.
With effect from April 1, 2006, Hallmark Tobacco Company, the wholly-owned subsidiary of VST Industries amalgamated with another wholly-owned subsidiary, VST Distribution, Storage & Leasing Company. The registered office of the company is located at 1-7-1063/1065, Azamabad, Hyderabad-500020, Andhra Pradesh.
Financials
VST Industries registered a steep drop of 22.85% in net profit of Rs 107.7 million for the quarter ended September 2007 from a profit of Rs 139.6 million for the quarter ended in September 2006.
Net sales rose 4.76% to Rs 818.1 million for the quarter ended September 2007 from Rs 780.90 million for the quarter ended September 2006.
Total income rose 4.65% to Rs 847.6 million for the quarter ended September 2007 from Rs 809.9 million for the quarter ended September 2006.
The earnings per share (EPS) of the company stood at Rs 6.97 for the quarter ended September 2007.