ITC shares hikes up to 7% and theirs shares open at a higher price at Rs 300 per share on stock exchange NSE and a sudden hike noticed on intraday at Rs 307.15 during the session it means that there is a 7% jump in IT shares price from the last day’s price which was closed at 287.20 being the largest producer of cigarettes in India IT reported 10% increase every year in the net profit of June quarter reported on Thursday.
IT’s net profit at the end of the June 30 of three month period was higher than the estimates of the analyst it was at Rs 2,810 crore. On average all the analysts expecting a profit of Rs 2,792 crore according to Thomson Reuters, according to Thomson and for the corresponding period last year, ITC posted a net profit of Rs 2,551 crore. As compared to last year revenue which was Rs 13,800 this year ITC from all the operations earned revenues of Rs 10,875 crore.
“We have seen a stable taxation on tobacco before GST is implemented so from last three years with an only one-year tax increase in the budget of 2020,” stated by ICICI Securities in union budget 2021- 22 review after several meetings during the GST Regime there has been no change in the tax rates of cigarette so for ITC FMCG business EBITDA (earnings before interest taxes depreciation and amortization)margin expansion is on track and everybody forecasts ITC would achieve and sustain a double-digit EBITDA margin over the few quarters.
India remains attractive given at low per capita consumption updated by the analyst edelweiss securities that the cigarette opportunity in India remains the same.
