VST-Lower Profit

VST Industries, suffered in 1995-96 with net profit declining by 13.7 per cent over 1994-95. The hike in excise duty yet again in the 1995 budget on all segments except in the lowest category (non- filter cigarettes up to 60) was the main reason for this lacklustre performance. Further, the imposition of luxury tax in the states of West Bengal, Orissa and Maharashtra and the entry tax in Bihar added to the decline in profitability with the total impact on the company and its subsidiaries on this account touching Rs 13.4 crore during the year under review.