Economy · India

Cigarette makers' Q1 profits drop due to tax hikes, but ITC shares rise

India's major cigarette manufacturers, including ITC, Godfrey Phillips India, and VST Industries, experienced a decline in net revenue, volumes, and profits during the first quarter. This downturn is attributed to increased tobacco taxes. ITC's profit dropped by 27%, with premium cigarette demand softening. Despite the profit decline, ITC's share price surged by approximately 4% on the NSE following the Q1 results. Analysts and brokerages are evaluating whether the worst of the impact has passed.

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