In the quarter ended December 2019, the company received 44 percent revenue from its cigarettes business.
Shares of ITC fell over 5 percent intraday to hit a 52-week low of Rs 221.6 on February 1 after the government proposed to increase excise duty on tobacco in the Union Budget.
In the quarter ended December 2019, the company received 44 percent revenue from its cigarettes business.
Cigarette business increased 4.7 percent YoY to Rs 5,310.98 crore with EBIT rising 5.6 percent to Rs 3,755.97 crore, said ITC in its BSE filing on January 31.
While presenting Union Budget 2020, Finance Minister Nirmala Sitharaman said the government proposed to raise excise duty on tobacco and cigarettes.
"If the cess on cigarettes is increased it would affect sales volumes of ITC’s cigarette business as the company will pass on the increase in rate to consumers through price hikes," KR Choksey had said in its Budget expectations report.
ITC was quoting at Rs 221.9 down 5.67 percent on the BSE at 14:51 hours IST.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
