Cigarettes puff up sentiment towards ITC

Price hikes in key brands boost cigarette revenues 5%, margins up 107 bps year-on-year to 36.4%

Sheetal Agarwal 

Expansion in operating profit margin of the cigarettes business was a key positive in ITC's results for the March 2017 quarter (Q4), and so were flat volumes given that analysts were expecting a decline in the latter. While price hikes in the Classic, Gold Flake and Navy Cut brands helped cigarette revenues rise five per cent, margins in the business expanded 107 basis points year-on-year to 36.4 per cent; sequentially, these were a tad lower by 20 basis points. The performance of hotels and paper business is also worth the mention. It were the agri and non-cigarette FMCG businesses ...

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Cigarettes puff up sentiment towards ITC

Price hikes in key brands boost cigarette revenues 5%, margins up 107 bps year-on-year to 36.4%

Price hikes in key brands boost cigarette revenues 5%, margins up 107 bps year-on-year to 36.4% Expansion in operating profit margin of the cigarettes business was a key positive in ITC's results for the March 2017 quarter (Q4), and so were flat volumes given that analysts were expecting a decline in the latter. While price hikes in the Classic, Gold Flake and Navy Cut brands helped cigarette revenues rise five per cent, margins in the business expanded 107 basis points year-on-year to 36.4 per cent; sequentially, these were a tad lower by 20 basis points. The performance of hotels and paper business is also worth the mention. It were the agri and non-cigarette FMCG businesses ... image
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