ITC cigarette revenue jumps 81% in June quarter; shares gain 4%
ITC’s cigarette revenue rose 81% year on year to Rs 15,383 crore in the June quarter, driving a rally in its shares. Consolidated profit, revenue and EBITDA declined, while Jefferies cited resilient volumes and upgraded its outlook, alongside tax and illicit-trade risks.
ITC’s June-quarter cigarette revenue rose 81% to Rs 15,383 crore, prompting Jefferies to upgrade the stock on resilient volumes. Consolidated profit, revenue and margins declined, while FMCG revenue grew 53%; brokerages flagged tax, mix and illicit-cigarette risks.
Why this matters
Motilal Oswal recently kept ITC Neutral at Rs 300 after a cigarette earnings miss. The June-quarter cigarette revenue increase and Jefferies upgrade contrast with that earlier caution, although tax and illicit-trade risks remain.
Retail-company signals are accelerating, up 225500% QoQ.