India: ITC Q1 Sales Jump on Demand for Smaller Smokes, Consumer Goods
ITC, India's largest cigarette maker, reported a better-than-expected 25 per cent rise in quarterly sales as demand for smaller and cheaper cigarettes grew and its consumer goods business put in a stronger performance.
India's fourth-biggest company by market value said net sales rose to Rs. 9,160 crore, up by a quarter from the year-earlier period and beating a consensus forecast of Rs. 8,510 crore from Thomson Reuters Starmine.
Net profit fell marginally short of expectations, rising 16 per cent to Rs. 2,190 crore for the quarter ended June 30, compared with an estimate of Rs. 2,220 crore rupees.
ITC sells four out of every five cigarettes sold in India and is nearly 25 per cent-owned by British American Tobacco.
ITC's consumer goods business, which includes packaged foods and personal care products, grew 11 per cent.
Sharp hikes in excise duties of 11-72 per cent announced for the federal budget 2014/15 in June are likely to hurt sales volumes by an estimated 3.5 to 4 per cent in the current fiscal year, analysts have said. Enditem