depends on the kind of case against them. Generally, tax authorities issue frivolous SCNs which are settled at the Tribunal level or SC/HC. Size of the Company does not matter. have seen demands of ridiculous amounts against even smaller companies or even partnership firms. also,
Entry tax - major litigation faced by many companies. pending before SC. industry wide issue.
Excise and Service tax case decided in favour of the company at tribunal level. department has appealed to supreme court. no major worries in terms of taxation it seems.
I had written to the investor relations email of VST asking the following questions:
The Stock exchange Filing did not mention any reason for the Resignation of the MD . Can you provide more details.
What is the Plan of the Board of Directors in identifying a successor to Mr. Lahiri
In the interim period what are the arrangements to run the company smoothly and who is in charge ?
By what time does the BOD expect to finalise a successor.
Their answer was as below:
The details for tendering resignation of Mr. Devraj Lahiri to pursue opportunities outside the Company have been mentioned in the filing to the Stock Exchanges.
It was also informed that he will be relieved from the services of the Company as per the provisions of the Articles.
The Board of Directors in their wisdom are working to find his successor and will keep the shareholders informed promptly of such developments.
Regards
Phani Mangipudi
Disc: invested recently after pandemic. Not added after md resignation
I believe that is not true. ITC is constantly lossing volume market share in Cigarette for last 5 years if my understanding is correct. Please check recent Godfrey Phillip presentation which suggest that they have gained market share while VST industries has also gained market share in my understanding. I would request if you can put source for 95% market share for ITC, it would assist to work further.
Not really. If a person did not smoke for three months (assuming that is true in the first place), that person will not consume 3 months worth in next month or two. However, the recovery, whenever that happens, will be rapid and the growth will achieve the same pre-covid trajectory (i.e. pent up demand)… in my opinion this is a case of what they call “L-shaped” recovery…a permanent loss in GDP…unless of course the prices are raised significantly
Hi, do you have any insights on the reasoning behind why the MD resigned? It is very difficult to find any management interviews on VST. They seem like good capital allocators but I can not find any sources except for annual reports.
My apology but I too have no clue about resignation of MD. However, since the company is broadly managed by BAT management support, I personally do not see MD resignation as major threat. This is my view and it may be wrong.
Discl: My view may be biased due to my investment. Among Top 10 holding for me. Not a SEBI registered Analyst, Not recommending investment.
is there any way we can get the volume figures… the P&L suggests below from the look of it …
Q4 FY 20 VS Q1 FY21 -----Combination of 38.32 % decrease in cost of material consumed and 19.12% Excise duty indicates that the volume sold has been hit by good % margin
I could attend part of the AGM, it was mentioned by one of the investors that cigarettes during lockdown time were “black marketed” and shopkeepers are selling at premium upto Rs 5 which is now at 1. So even in weak economic condition price is not a constraint for sin products. So taxes and prices will have negligible impact on demand. This is what was observed when wine shops reopened after a long period of time. I would say market size is limited but demand is constant for VST. Also company confirmed now stock levels are adequate at all levels so there is no supply disruption going forward
I was comparing this co’s recent results with ITC. There’s a good difference in Gross Margins for both the companies. Has anyone else researched abt this and can explain, if possible?
Charms and Charminar have gone missing from North India, but have been replaced by Total. Another fact is that rs. to rs. VST brands are a bit cheaper than ITC.
