VST Industries Q3 Review - Tactical Trade Promotions Lift Volumes: Centrum Broking
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Centrum Broking Report
VST Industries Ltd.'s reported Q3 FY22 revenues in-line with our estimates; grew 14.5% to Rs 2.9 billion backed by strong 15% volume growth. The gross margin declined 179 basis points to 53.1% due to rise in tactical trade discounts and promotions focused to driving consumer awareness for Total brand.
Ebitda margin declined 163 bpa YoY to 33.1%, as employee cost declined 1.9%, though other expenses increased 29.9% due to higher marketing expenses.
VST Industries' management indicated that mid-term growth look stronger due to-
recovery in north markets,
focus on premium brand positioning,
December 2021 volumes back to pre-Covid-19 levels and
Total brand continue to be strong.
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