VST Industries Reports Stable Cash Flow Amid Ongoing Profit Decline Challenges

VST Industries, a small-cap player in the FMCG sector, has recently undergone a financial trend adjustment, reflecting a more stable performance in its latest quarter ending June 2025. The company reported notable achievements in several key financial metrics, including an operating cash flow of Rs 193.47 crore and a PBDIT of Rs 76.93 crore, both marking the highest figures recorded. Additionally, the operating profit to net sales ratio reached 25.82%, indicating effective cost management.
However, challenges remain for VST Industries. The company's profit after tax for the last six months has declined by 23.03%, totaling Rs 109.13 crore. Furthermore, the return on capital employed stands at a low 20.35%, and the debtors turnover ratio is at its lowest, recorded at 28.20 times. Net sales for the quarter were also subdued at Rs 297.90 crore.

In terms of market performance, VST Industries has faced significant headwinds compared to the Sensex. Over the past year, the stock has declined by 31.22%, while the Sensex has seen a modest gain of 2.09%. This contrast highlights the ongoing challenges the company faces in a competitive market landscape.