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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

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