Taxes crush cigarette volumes at ITC
9 years, 8 months ago

Taxes crush cigarette volumes at ITC

Live Mint  

ITC Ltd is feeling the full brunt of four successive years of tax increases on cigarettes. In end April 2013, just before Unilever Plc announced a voluntary open offer to increase its stake in its Indian subsidiary, ITC’s market capitalization was as much as 2.5 times that of Hindustan Unilever Ltd. While Unilever’s increased interest in its Indian operations, coupled with stellar growth in FY14, had a role to play, the main reason the valuation gap has narrowed is the constant pressure on ITC’s cigarette sales owing to successive hikes in taxation. The company said in a press release, “The punitive taxation regime on legal cigarettes in India was exacerbated with two rounds of sharp increase in excise duty—in July 2014 and February 2015. Thanks to price hikes, the decline in revenues of the cigarettes division was contained at 1.2%, while the segment’s operating profit margin rose handsomely, resulting in a 2.2% growth in profit.

Tax Increase Itc Cigarette Excise Duty  pressure  volumes  increase  taxes  excise  profit  cigarettes  sales  itcs  growth  itc  crush  tax  decline  cigarette

History of this topic

Up in smoke? Tobacco stocks struggle as costs rise, tax jitters grow
1 month ago

Up in smoke? Tobacco stocks struggle as costs rise, tax jitters grow

Live Mint  

The tobacco industry is feeling the heat. ITC, India’s largest cigarette maker, reported a 211 basis-point year-on-year decline in its cigarette Ebitda margin in the December quarter, largely due to a 25-30% increase in tobacco leaf prices. ITC’s gross cigarette sales rose 8% year-on-year to ₹8,940 crore, while Godfrey Phillips, a pure-play tobacco major, posted a sharp 27% year-on-year increase …

Company Outsider: ITC’s pivot to FMCG giant has been a strategic tour de force
1 month, 1 week ago

Company Outsider: ITC’s pivot to FMCG giant has been a strategic tour de force

Live Mint  

Company Outsider is a weekly newsletter by Sundeep Khanna. Smart acquisitions, smartly timed Historically rooted in tobacco, it has been aggressively building its non-cigarette fast moving consumer goods business, particularly food, with notable purchases such as Sunrise Foods in 2020, and stakes in Meatigo and Prasuma in 2025. In the long run, it’s a tightrope act for the company as …

Why ITC share price rose over 8% today, biggest single-day gain since Sept 2021
1 year ago

Why ITC share price rose over 8% today, biggest single-day gain since Sept 2021

Hindustan Times  

ITC share price today: ITC share price rose over 8% today after it was reported that a block deal in which British American Tobacco Plc was likely to be the seller of ITC shares. ITC share price today: Around 43.7 crore ITC shares, amounting to 3.5% of the total equity of the company, changed hands in a block deal. British …

ITC Q1 net profit rises 16% to ₹5,180 crore
1 year, 7 months ago

ITC Q1 net profit rises 16% to ₹5,180 crore

The Hindu  

Diversified entity ITC Ltd. on Monday reported a 16.08% rise in consolidated net profit to ₹5,180.12 crore for the first quarter ended June. During the June quarter, revenue from the "total FMCG" segment, which also includes cigarettes, surged 13.46% to ₹13,528.37 crore. "The Businesses continued to drive improvement in profitability through multi-pronged interventions viz premiumisation, supply chain optimisation, judicious pricing …

ITC Q1 net profit likely to rise 16%, revenue may remain flat YoY
1 year, 7 months ago

ITC Q1 net profit likely to rise 16%, revenue may remain flat YoY

Live Mint  

ITC Ltd, the diversified conglomerate, is set to declare its Q1 results today. The cigarette manufacturer is expected to see decent double digit growth in the net profit for the first quarter of FY24, while its revenue is likely to remain flat on a year-on-year basis. ITC Q1 net profit is expected to rise 16.7% on-year to ₹4,886 crore led …

ITC becomes India's most valuable FMCG stock ousting the country's Unilever unit
1 year, 8 months ago

ITC becomes India's most valuable FMCG stock ousting the country's Unilever unit

Hindustan Times  

Asia’s largest cigarette maker ITC Ltd. is set to reclaim its position as India’s most valuable fast-moving consumer goods stock after ousting Hindustan Unilever Ltd. from the spot. ITC, which primarily makes money by selling cigarettes but also holds interests in hotels, paper and consumer staples industries, saw its valuation jump above 6.1 trillion rupees for the first time ever …

ITC shares hit fresh 52-week high; should you buy?
1 year, 10 months ago

ITC shares hit fresh 52-week high; should you buy?

Live Mint  

The bullish run of ITC shares remains unabated as they rose nearly 2 per cent in morning trade to hit their fresh 52-week high of ₹442.50 on BSE on Thursday, looking set to extend its winning streak into the fifth consecutive session. The company outperformed analyst expectations with a 21.4 per cent surge in standalone net profit for the March …

ITC profit up 21% in Q4 as cigarette sales rise
1 year, 10 months ago

ITC profit up 21% in Q4 as cigarette sales rise

Live Mint  

ITC Ltd has outperformed analyst expectations with a 21.4% surge in standalone net profit for the March quarter, on the back of stronger cigarette sales and softening commodity prices. The company, known for its Gold Flake cigarettes and Bingo chips, reported a net profit of ₹5,086.86 crore for the quarter ended 31 March, up from ₹4,190.96 crore a year ago. …

Cigarette maker Imperial Brands sees profits rise as US market share increases
1 year, 10 months ago

Cigarette maker Imperial Brands sees profits rise as US market share increases

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Cigarette maker Imperial Brands has …

ITC’s cigarettes biz growth prospectus intact despite new tax. Here’s why
1 year, 11 months ago

ITC’s cigarettes biz growth prospectus intact despite new tax. Here’s why

Live Mint  

FMCG major, ITC emerged as the top underperforming stock on Monday. In its latest note on ITC, Sharekhan said, "recent amendment in the Finance Bill 2023 on tobacco/tobacco products is unlikely to have any material impact on tax rates on cigarettes. Brokerage's note added, "ITC is expected to maintain its volume growth momentum in the cigarette business, given no price …

After Sept. quarter show, ITC’s stock is still lit
2 years, 5 months ago

After Sept. quarter show, ITC’s stock is still lit

Live Mint  

Investors in shares of ITC Ltd have little to complain about. Notably, volume of the mainstay cigarette business is estimated to have risen by about 5% on a three-year compound annual growth rate basis. View Full Image On Fire Walmart will boost Flipkart with $3bn to challenge rivals Why Reliance investors remain unimpressed A PLI scheme to defend power grids …

Decline in GST revenue to have a direct impact on ITC as govt may turn to tobacco to hike tax
5 years, 5 months ago

Decline in GST revenue to have a direct impact on ITC as govt may turn to tobacco to hike tax

Firstpost  

A high-level panel constituted by the government to suggest measures to augment GST revenue collection will hold its first meeting today. CLSA, the capital markets and investment group, trimmed weight on ITC in its model portfolio to ‘neutral’ on concerns of a dip in revenues from Goods and Services Tax may force the government to hike taxes on tobacco and …

Cigarette stocks rally about 5.5 per cent after cabinet’s decision to ban e-cigarettes
5 years, 6 months ago

Cigarette stocks rally about 5.5 per cent after cabinet’s decision to ban e-cigarettes

Op India  

The Cabinet on Wednesday approved an ordinance making the production, import, distribution and sale of electronic cigarettes a cognizable offence. BREAKING | Cigarette stocks up by 5.5 per cent after the Cabinet approved an ordinance for banning production, import, distribution and sale of electronic cigarettes. — The Telegraph September 18, 2019 The government’s decision to ban electronic cigarettes was welcomed …

There is neither smoke nor fire in ITC’s June quarter financial results
5 years, 7 months ago

There is neither smoke nor fire in ITC’s June quarter financial results

Live Mint  

Cigarette-to-soap maker ITC Ltd’s shares touched a new 52-week low of ₹257.65 on the National Stock Exchange on Monday. Volume growth of its mainstay cigarettes business, which accounted for as much as 86% of the company’s overall June quarter Ebit is a key disappointing factor. “ITC’s Q1FY20 missed slightly operationally as cigarette volumes grew 3% year-on-year, and cigarette Ebit grew …

ITC’s net profit rises 12.6% to ₹3,174 cr in June quarter
5 years, 7 months ago

ITC’s net profit rises 12.6% to ₹3,174 cr in June quarter

Live Mint  

New Delhi: ITC Ltd, India’s largest cigarette maker, on Friday reported 12.6% increase in its June quarter stand-alone profit, in line with Street estimates. Segmental revenue at the company’s FMCG-others business, which includes packaged food and personal care products, grew 6.6% to ₹3,060 crore; the segment’s EBIT grew 55% to ₹78.02 crore. “Cigarette revenue and volumes growth was moderate, while …

ITC's net profit rises 18.7% to Rs 3,481.9 cr in March quarter, total income up 14.3%
5 years, 10 months ago

ITC's net profit rises 18.7% to Rs 3,481.9 cr in March quarter, total income up 14.3%

Firstpost  

New Delhi: Diversified group ITC Ltd on Monday reported a 18.72 percent increase in standalone net profit to Rs 3,481.9 crore for the fourth quarter ended 31 March, 2019. ITC’s total income during the quarter under review rose 14.26 percent stood to Rs 12,946.21 crore, compared to Rs 11,329.74 crore in the same period last fiscal, ITC said in a …

ITC Q2 results 2018-19: Smoke signals don’t bring good news
6 years, 5 months ago

ITC Q2 results 2018-19: Smoke signals don’t bring good news

Live Mint  

A long road lies ahead of ITC Ltd. Its shares have risen by a mere 4.5% in the past year, while Hindustan Unilever Ltd’s shares have gained by 22.5%. But then, its segment profit margin declined by 1 percentage point over a year, even though it rose by 1.8 percentage points sequentially. ITC’s FMCG business is doing well with sales …

ITC Q3 net profit up 17% at Rs 3,090.20 cr; FMCG revenue declines 31%
7 years, 2 months ago

ITC Q3 net profit up 17% at Rs 3,090.20 cr; FMCG revenue declines 31%

Firstpost  

ITC’s total income during the October-December quarter stood at Rs 10,579.11 crore New Delhi: Diversified group ITC Ltd on Friday reported a 16.75 percent increase in its net profit at Rs 3,090.20 crore for the quarter ended December 31, 2017. The company had posted a net profit of Rs 2,646.73 crore during the same period previous fiscal, ITC Ltd said …

ITC looks to accelerate growth in non-cigarette businesses
7 years, 6 months ago

ITC looks to accelerate growth in non-cigarette businesses

Live Mint  

New Delhi: ITC Ltd, the cigarettes-to-shampoo company, is working on an eight-point strategy to reinvent itself and accelerate growth in its non-cigarette businesses, especially branded consumer packaged foods, a segment it entered 15 years ago, chief executive Sanjiv Puri said. The “create the new ITC” strategy is part of the Kolkata-based company’s plan to reach Rs1 trillion in revenue from …

ITC March quarter net profit up 12% to Rs 2,669.47 cr
7 years, 10 months ago

ITC March quarter net profit up 12% to Rs 2,669.47 cr

Firstpost  

ITC stock was trading at Rs 308.20 on BSE in the afternoon trade, up 2.84 percent New Delhi: Diversified firm ITC today reported a 12.13 percent increase in standalone net profit to Rs 2,669.47 crore for the fourth quarter of 2016-17, driven by revenue growth in agri commodities, branded packaged foods and personal care products businesses. ITC’s net sales during …

ITC's spectacular Q4 cigarette, non-cigarette growth triggers 7.5% surge in stock
8 years, 10 months ago

ITC's spectacular Q4 cigarette, non-cigarette growth triggers 7.5% surge in stock

Firstpost  

In early trade, the ITC counter notched up gains of 7.5 percent to touch a high of Rs 354.75 before losing some ground thereafter The BSE-30 share benchmark Sensex erased most of its early gains to trade marginally higher, but shares of cigarette-to-FMCG major ITC continue to outperform broader markets following an spectacular fourth quarter results announced last week. In …

With larger health warnings, ITC resumes cigarette production; stocks surge 2.4 pc
8 years, 10 months ago

With larger health warnings, ITC resumes cigarette production; stocks surge 2.4 pc

India TV News  

Mumbai: India’s biggest cigarette manufacturer ITC Ltd. today said it had resumed production at its plants with larger pictoral health warnings as mandated by the new rules of the government. "ITC cigarette factories have resumed production in a phased manner, with the specified 85 percent graphical warning pending hearing by the Karnataka High Court,‎" an agency report quoted an ITC …

ITC will soon increase cigarette prices by up to 21%-IndiaTV News
10 years ago

ITC will soon increase cigarette prices by up to 21%-IndiaTV News

India TV News  

Kolkata: Following an increase in excise duty in the Union Budget 2015, country's largest cigarette maker ITC is all set to increase the price of all of its products. The 65 mm cigarette category, the most affordable segment, will see a maximum price increase of 16-21 per cent, because of a 25 per cent jump in excise duty. Prices of …

ITC to double sales of non-cigarette FMCG biz
11 years, 6 months ago

ITC to double sales of non-cigarette FMCG biz

The Hindu  

ITC is increasingly focussing on its non-cigarette FMCG business, which is now on the path of profitability, with healthy growth rates. Stating this, ITC’s director-in-charge of non-cigarette FMCG business, Kurush Grant, told The Hindu that the share between the cigarette and the non-cigarette business is 58:42 per cent in terms of top line. ITC’s non-cigarette business includes branded packaged foods, …

Budget likely to hike tax on cigarettes. How will it affect ITC?
13 years ago

Budget likely to hike tax on cigarettes. How will it affect ITC?

Firstpost  

The company seems well-poised to weather an excise duty hike. According to a JP Morgan report, in the one month leading to the Budget, ITC has given negative or flat returns seven times in the past ten years. But given the strong brand loyalty and pricing power, ITC’s cigarette volumes have not dropped sharply as consumers continued to puff away …

ITC Non-Tobacco Biz To Be Profitable Before I Retire, Says Deveshwar
13 years, 8 months ago

ITC Non-Tobacco Biz To Be Profitable Before I Retire, Says Deveshwar

India TV News  

ITC Non-Tobacco Biz To Be Profitable Before I Retire, Says Deveshwar Kolkata, Jul 29: Diversified conglomerate ITC Ltd's Chairman Y C Deveshwar today said the non-tobacco FMCG business will become profitable before he retires from the company.“Before I hang up my boots, the non-tobacco FMCG business Kolkata, Jul 29: Diversified conglomerate ITC Ltd's Chairman Y C Deveshwar today said the …

ITC Vs HUL: Smoking thrills, competition kills
13 years, 8 months ago

ITC Vs HUL: Smoking thrills, competition kills

Firstpost  

On Thursday, the two companies announced their earnings for the quarter ended June 2011. ITC, the listed cigarettes-to-consumer goods conglomerate, saw its shares rise 2 percent, while Hindustan Unilever Ltd, the largest consumer company, saw shares decline 1 percent on Thursday when both announced their June quarter results. ITC, backed by some solid profit growth in cigarettes and hotels, posted …

Cigarette sales rise at Imperial
14 years, 4 months ago

Cigarette sales rise at Imperial

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. The world's fourth-biggest cigarette maker said yesterday that economic …

ITC profit jumps, beats estimates
15 years, 5 months ago

ITC profit jumps, beats estimates

Live Mint  

Kolkata: ITC Ltd, the country’s biggest cigarette manufacturer, on Friday said net profit rose 25.8% to Rs1,009.91 crore in the quarter ended September from the year-ago period, driven largely by a 21.35% increase in revenues from cigarette sales. Revenues from the hotel business, however, declined 23.77% from last year to Rs186.28 crore because of poor occupancy and average room tariff, …

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