Monday, July 9, 2012

Notes from VST Industries Annual Report FY 2011-12

- Revenue from Operation grew from 139654 to 159846 lacs - 14.4%
- PAT from 9501 to 14251 lacs - growth of 49.9%
- EPS from 61.53 to 92.29 - growth of 49.9%
- Dividend from 45 5o 65 - growth of 45%
Cash Flow
- Net Cash flow from operating activities - 15117 lacs
- Free cash flow = 15117.76 - 3438.68 + 522.59 =  12201 lacs (85% of PAT)
Market Price
- Between 635 to 1500 - PE of 10.32 to 24 times based on FY10-11
- Current price of 1700 roughly - PE of 18 times.

The Union Budget presented in February 2011, did not propose any changes in the excise rates, which was a welcome relief for the industry and your Company.
The industry as a result had a marginal growth in volumes of around 4%; however, your Company was able to beat the general industry trend and grow volumes by 12% when compared to same period last year.
Financial year 2011-12 was one of the best years in terms of volume growth. Filter volumes now cover virtually 98% of your Company's volume.
The increase in VAT rates across states continued with more states increasing the VAT rates during the current financial year. Two key states e.g. West Bengal and Andhra Pradesh, where your Company has sizeable presence, increased VAT rates to 20% each. This will impact margins and profitability both in the current year and in the future.
During the financial year 2011-12, increase in VAT rates were affected in 17 states ranging from 0.75% to
Stable tobacco prices and higher foreign exchange volatility were the other highlights for the current financial year.
-The new graphic health warnings have come into effect from 1st December, 2011.
Your Company's brands were stable during 2011-12, with most brands gaining volumes.
Brands like SPECIAL EXTRA FILTER, MOMENTS and CHARMS VIRGINIA FILTER were the key contributors to the growth in volume.
Your Company continued its strategic thrust of launching new brands in value for money segments in markets which provide opportunities as these continue to help grow the volumes.
During the year under review the cigarette volumes stood at 762 mns up by 12% when compared to 2010-11. The value realisations were higher at 1435 crore, up by 16.4% when compared to 1230 crore during the
previous year.
Competition has intensified with many brands now available at different price points where your Company's brands are present. This is apart from your Company's brands having to face the non-duty paid cigarettes which are available across markets in India. 
- Leaf TobbacoYour Company has recorded leaf export turnover of 154 crore, in the year 2011-12,  despite glut in the international market and volatility in exchange rate.
As on 31st March, 2012, your Company had a strength of 931 employees, with 296 management staff
and 635 workmen.

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