ITC Q1 sales jump on demand for smaller smokes, consumer goods
MUMBAI (Reuters) - ITC Ltd (ITC.NS), India's largest cigarette maker, reported a better-than-expected 25 percent 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 91.6 billion rupees ($1.5 billion), up by a quarter from the year-earlier period and beating a consensus forecast of 85.1 billion rupees from Thomson Reuters Starmine.
Net profit fell marginally short of expectations, rising 16 percent to 21.9 billion rupees ($364 million) for the quarter ended June 30, compared with an estimate of 22.2 billion rupees.
ITC sells four out of every five cigarettes sold in India and is nearly 25 percent-owned by British American Tobacco (BATS.L).
ITC's consumer goods business, which includes packaged foods and personal care products, grew 11 percent.
Sharp hikes in excise duties of 11-72 percent announced for the federal budget 2014/15 in June are likely to hurt sales volumes by an estimated 3.5 to 4 percent in the current fiscal year, analysts have said.
($1 = 60.1050 rupees)
(Reporting by Nandita Bose; Editing by Stephen Coates and Edwina Gibbs)
- Tweet this
- Share this
- Digg this
- IPhone emerges from "bygone era", reviewers hail bigger handset
- Alibaba in talks with Snapdeal to enter India - Economic Times
- After Obama speech, Islamic State wins new recruits in Syria - monitor
- Amazon expands Kindle lineup, boosts price of basic e-reader
- Fed renews zero rate pledge, but hints at steeper rate hike path
The United States said on Wednesday it will press Prime Minister Narendra Modi to end his blockage of a global trade pact when he visits Washington this month, something that could dampen the mood of a trip aimed at revitalizing strategic ties. Full Article
China cenbank injects $81 bln into major banks to support economy - reports Full Article