Cigarette makers see volumes and profits fall in first full quarter after tax hike
ITC, Godfrey Phillips India and VST Industries reported weaker underlying cigarette revenue, volumes and profit in April-June after GST rose to 40% and new excise duties took effect on February 1. VST’s cigarette volumes declined 14%, while Godfrey Phillips’ net profit fell 44.3%.
ITC, Godfrey Phillips India and VST Industries reported lower underlying revenue, cigarette volumes and profits in the first full quarter after India raised cigarette GST to 40% and imposed additional excise duties. Companies used calibrated price hikes and portfolio adjustments.
Why this matters
The results extend ITC’s recent pattern of tax-led cigarette pressure: an earlier signal reported weaker Q1 underlying sales across ITC, Godfrey Phillips and VST, while another flagged ITC’s 27% Q1 profit decline as tax burden hit margins.
Retail-company signals are accelerating, up 222383% QoQ.