ITC Q2 Profit Expected to Drop 30% Amid Tax Hikes
· Business · Economic Times, Business Standard
ITC is projected to report a nearly 30% decline in profit for the September quarter as higher cigarette taxes dampen performance. Brokerages estimate an 8% year-on-year drop in cigarette volumes, with segment operating profit potentially falling by 29%. While price increases have been implemented across much of the company's portfolio, they have not fully offset the impact of the new tax regime. Growth in the FMCG and paper businesses is expected to provide some support to overall consolidated revenue. Nuvama Equities projects a 20% decline in consolidated EBITDA for the quarter.
Why it matters
The expected decline in profit highlights the significant impact of tax policy changes on ITC's core cigarette business and its overall financial performance.
Read the original report — Economic Times
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