Sequentially, the cigarette maker's net profit rose 5.76% and net sales (excluding excise duty) jumped 14.29% in Q2 FY23 over Q1 FY23.

The company said that this performance indicates that the recovery momentum that was generated in the previous quarter has sustained and is likely to gain pace in the next quarter.

Profit before tax stood at Rs 118.76 crore in Q2 FY23, rising 10.5% from Rs 107.43 crore posted in the same period last year.

The operating margin stood at 21.1% despite inflationary pressures that increased overall expenses considerably, the firm stated.

Total expense spiked 34.21% year on year to Rs 353.86 crore in Q2 FY23. Cost of material consumed jumped 65.93% to Rs 184.18 crore from Rs 111 crore posted in Q2 FY22.

Aditya Deb Gooptu, managing director, VST Industries, said, “VST Industries has registered growth in top-line as well as bottom-line in a seasonally weak quarter that has impacted sales of many consumer facing firms. Continued retail inflation seems to have impacted consumer demand, but we remained firm on growth trajectory due to vibrant portfolio of brands”.

VST Industries manufactures and distributes cigarettes and tobacco products.

Shares of VST Industries shed 0.19% to Rs 3,629.60 on the BSE.