Godfrey Phillips shares drop 6% after Q1 profit falls 44.3% on higher excise duty
Key Takeaways
- •Godfrey Phillips reported a 44.3% year-on-year fall in net profit for the June quarter.
- •Gross revenue and total income more than doubled during the quarter despite the profit decline.
- •The company said domestic cigarette volumes remained resilient after a tax-led price increase.
- •Management flagged rising illicit trade as a risk that could hurt legal tobacco sales and margins.
- •The market reacted with a 6% drop in Godfrey Phillips shares.
Godfrey Phillips India share price
ITC share price
VST Industries share price
Golden Tobacco share price
Godfrey Phillips shares drop 6% after Q1 profit falls 44.3% on higher excise duty
Godfrey Phillips reported a 44.3% year-on-year decline in net profit for the June quarter, as higher excise duty weighed on earnings even though gross revenue and total income more than doubled.
The cigarette maker said domestic cigarette volumes remained resilient despite a tax-led price increase. It also flagged concern over rising illicit trade, an issue that can pressure legal tobacco sales and margins across the sector when tax burdens rise.
For investors tracking listed tobacco companies, the update matters because excise duty changes can quickly affect pricing, profitability and demand dynamics, making quarterly operating commentary as important as the headline profit number. The company's note on illicit trade also highlights a broader industry risk that can shape near-term volumes for formal players even when reported revenue remains elevated.
What did the management say?
About Godfrey Phillips
Live Events
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
Subscribe to ET Prime and read the Economic Times ePaper Online and Sensex Today.
Top Trending Stocks: SBI share price, Axis Bank share price, HDFC Bank share price, Infosys share price, Wipro share price, NTPC share price
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
Subscribe to ET Prime and read the Economic Times ePaper Online and Sensex Today.
Top Trending Stocks: SBI share price, Axis Bank share price, HDFC Bank share price, Infosys share price, Wipro share price, NTPC share price
Silver now needs a gate pass, not just a toll. Will it impact demand?
Silver now needs a gate pass, not just a toll. Will it impact demand?
In a first, Airbus set to source Indian titanium for its planes
In a first, Airbus set to source Indian titanium for its planes
Who did India’s ethanol boom actually benefit?
Who did India’s ethanol boom actually benefit?
Is Bitcoin finally becoming digital gold equivalent?
Is Bitcoin finally becoming digital gold equivalent?
Backed by Flipkart, Cleartrip plans to narrow the gap with MakeMyTrip
Backed by Flipkart, Cleartrip plans to narrow the gap with MakeMyTrip
As Cult.fit prepares for IPO, questions on balance sheet health weigh
As Cult.fit prepares for IPO, questions on balance sheet health weigh