VST Industries spurted 8.08% to Rs 3,500 after standalone net profit rose 0.03% to Rs 75.71 crore on 19.4% decline in net sales to Rs 245.39 crore in Q1 June 2020 over Q1 June 2019.
Standalone profit before tax (PBT) dropped 13.2% to Rs 102.02 crore in Q1 June 2020 as against Rs 117.54 crore in Q1 June 2019. Current tax expense for the quarter tumbled 35.4% at Rs 27.11 crore as against Rs 41.99 crore in Q1 June 2019. The result was declared after market hours yesterday, 3 August 2020.
Due to the outbreak of COVID-19 pandemic, the business operations of the company were adversely impacted in the form of disrupted supply chain and decline in consumer demand. While the manufacturing operations have gradually started returning to normalcy since mid-May 2020, the company estimates the pandemic to continue having its impact on sales. lt is also seen that some states have selectively started re-imposing lockdowns. This could have some negative impact on operations, however, the management continues to monitor the changes and impact, if any.
The company added that despite the challenging context of COVID-19 disrupting markets, the firm delivered a resilient performance which is a reflection of its intrinsic strength.
VST Industries has a manufacturing facility at Hyderabad and Toopran (Telangana) and its principal activities are manufacture & sale of cigarettes and unmanufactured tobacco.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
