ITC is one of India's foremost and largest private sector consumer companies. ITC, a management driven company, has a diversified presence in FMCG, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, and Information Technology.
For 3QFY2017, ITC has reported below estimates numbers, both on the top-line and bottom-line fronts, on the back of lower Cigarettes volume growth due to demonetization of Indian currency. However, healthy growth was witnessed in other businesses like Hotels, Agri Business, etc.
ITC has reported 1.5% volume growth and 9% EBIT growth in cigarette business enabled by sustained recovery post 4Q price increase. GST council has increased cess on cigarettes resulting in 2‐8% price increase across various segments. Although uniform pricing and less hassles are positive, steep price increase in states with VAT rates less than 20‐25% would delay volume growth recovery to 2HFY18.
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