VST Industries reports negative financial results for Sep 2024 quarter

Oct 24 2024 10:30 PM IST
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VST Industries, a midcap company in the cigarettes/tobacco industry, reported a negative financial performance for the quarter ending September 2024. Despite a high Dividend Payout Ratio and consistent dividend per share, the company's Profit After Tax and Operating Cash Flow have decreased. Operating Profit and Profit Before Tax have also seen a decline. MarketsMojo recommends holding the stock for now.

VST Industries, a midcap company in the cigarettes/tobacco industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for VST Industries is 'Hold'.

According to the Sep 2024 financials, VST Industries has seen a negative performance with a score of -11, a decrease from -7 in the last 3 months. However, there are some positive aspects to the company's financials.

One of the strengths of VST Industries is its high Dividend Payout Ratio (DPR) of 76.81% annually, which has been growing each year in the last five years. This indicates that the company is distributing a higher proportion of its profits as dividends to its shareholders. Additionally, the company has also been consistently distributing a higher dividend per share (DPS) of Rs 150.00 in the last five years.

On the other hand, there are some areas of concern for VST Industries based on its Sep 2024 financials. The company's Profit After Tax (PAT) for the quarter has fallen by -29.9% to Rs 47.56 crore, compared to the average PAT of the previous four quarters at Rs 67.86 crore. This indicates a negative trend in the near term for the company's profitability. The company's Operating Cash Flow has also been falling each year in the last three years, indicating a decline in its cash revenues from business operations.

Furthermore, VST Industries has also seen a decrease in its Operating Profit (PBDIT) for the quarter, which is at its lowest in the last five quarters. The company's Operating Profit Margin has also deteriorated, reaching its lowest at 18.78% in the last five quarters. The Profit Before Tax less Other Income (PBT) for the quarter has also decreased by -19.3% compared to the average PBT of the previous four quarters. This indicates a negative trend in the near term for the company's profitability.

In conclusion, VST Industries has seen a negative financial performance for the quarter ending September 2024. While the company has some strengths in terms of its dividend payouts, there are also areas of concern such as declining profitability and cash flow. Investors are advised to hold their stock in VST Industries for now, as recommended by MarketsMOJO.
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