ITC profit falls 18% as cigarette volumes drop
· Business · Moneycontrol, LiveMint, Economic Times
ITC's Q2 profit tumbled 18% to Rs 4,229 crore as cigarette volumes fell due to higher prices, despite a 5% revenue increase. The company, headquartered in Kolkata, reported lower volumes across its cigarette portfolio impacting overall margins. ITC's diversified FMCG segment saw weaker demand while its agri-business and hotels segments showed resilience. The results highlight the challenge of sustaining growth in India's cigarette market amid rising prices and shifting consumer preferences.
Why it matters
The profit decline signals margin pressure for ITC's core cigarette business, affecting dividend payouts and investor confidence in India's largest cigarette maker. This financial setback may impact employment in tobacco units and related distribution networks across India.
Read the original report — Moneycontrol
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