ITC Q1 sales jump on demand for smaller smokes, consumer goods

MUMBAI Tue Jul 29, 2014 1:21pm IST

A man talks on his mobile phone as he walks past an ITC office building in Kolkata September 4, 2012.  REUTERS/Rupak De Chowdhuri/Files

A man talks on his mobile phone as he walks past an ITC office building in Kolkata September 4, 2012.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

Stocks

   

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)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Republic Day

Reuters Showcase

Banking Revolution

Banking Revolution

India turns to corner shops, mobile phones for banking revolution.  Full Article 

Nuclear Group

Nuclear Group

China urges India to take steps to satisfy standards of NSG  Full Article 

Gold Market

Gold Market

Chinese gold demand holds up ahead of holiday, Indian buying weak  Full Article 

India-U.S. Relations

India-U.S. Relations

Column - U.S. and India should join to balance China's rise  Full Article 

Nuclear Deal

Nuclear Deal

Obama reveals nuclear breakthrough on landmark India trip  Full Article 

Australian Open

Australian Open

Serena avenges French Open loss to reach quarter-finals.  Full Article 

Miss Universe

Miss Universe

Miss Colombia is crowned Miss Universe for 2015.  Full Article 

SAG Awards

SAG Awards

'Birdman' wins top honor from actors in march toward Oscars.  Full Article 

Climate Change

Climate Change

U.S.-China climate deal does not put pressure on India, says Modi  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage