Tobacco.org

ITC’s Q2 profit rises 4.2% on higher cigarette prices  

India’s biggest tobacco firm ITC Ltd posted a 4.2% increase in second quarter profit after raising prices of cigarettes earlier this year. Net income rose to Rs803 crore in the three months ended 30 September, from Rs771 crore a year ago, Kolkata-based ITC said in a statement on Friday. . . .

ITC is expanding sales of shampoo, food, clothing and other goods as the Union government increases taxes and restrictions on cigarettes for health reasons. Cigarettes account for about half the company’s revenue.

“Cigarette sales have been robust as there has been a distinct customer shift to higher-priced filter cigarettes after the government raised taxes,” said Abhijeet Kundu, an analyst at Mumbai-based Antique Securities Ltd.

ITC, 32% owned by British American Tobacco Plc., raised prices of the Gold Flake and Classic cigarette brands earlier this year.

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