ITC

** India's ITC ITC.NS posted marginal rise in quarterly adjusted profit, helped by cigarette price hikes that somewhat offset tax and cost pressures

** Shares fall over 1.5% to 303.30 rupees

PRICE HIKES WEIGH ON VOLUMES

** Jefferies ("Hold," PT: 350 rupees) says the "real test" lies in June quarter as the full impact of higher taxes and partial price hikes could hurt volumes, profitability

** Elara ("Accumulate," PT: 335 rupees) says Q4 does not reflect the true volume impact due to tax changes, with Q1FY27 expected to provide clarity on the effect of price hikes

** Macquarie ("Neutral," PT: 330 rupees) sees a sharp hit to profitability in the June quarter before gradual improvement

** Nomura ("Reduce," PT: 300 rupees) says staggered price hikes may not fully offset the tax burden, keeping margins under pressure in the near term

(Reporting by Bipasha Dey in Bengaluru)

(([email protected];))

Corrects paragraph 2 to say profit rose 4.3%, not 2%

May 21 (Reuters) - Indian consumer goods major ITC ITC.NS posted a marginal rise in quarterly profit before exceptional items and tax on Thursday as price increases in its core cigarettes business cushioned the impact of higher taxes on the segment.

The company, which makes Gold Flake cigarettes, reported profit rose 4.3% to 66.92 billion rupees ($695.63 million) in the March quarter.

The company had recorded a one-time gain of 151.79 billion rupees in the year-ago quarter following the demerger of its hotels business.

ITC implemented price increases across its cigarette brands following the government's excise duty hike that came in effect in February, though the increases were calibrated to protect volumes.

However, analysts at Goldman Sachs said the price hikes of 20%-40% across key cigarette brands were lower than what would be required to fully offset the tax increase, implying some near-term pressure on margins.

Revenue in the cigarettes business, which accounts for the bulk of the company's profits, rose about 32% to 110.66 billion rupees. Revenue from the company's consumer goods segment, which houses brands such as Aashirvaad, Sunfeast and Bingo, rose 15% to 63.04 billion rupees.

Overall revenue climbed 17% to 216.95 billion rupees.

($1 = 96.2000 Indian rupees)

(Reporting by Surbhi Misra and Devika Nair in Bengaluru; Editing by Janane Venkatraman)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

May 19 (Reuters) - ITC Ltd ITC.NS:

• ITC - SHAREHOLDING IN MOTHER SPARSH BABY CARE HAS INCREASED FROM 39.47% TO 49.32%

Source text: ID:nBSE9vR26b

Further company coverage: ITC.NS

(([email protected];))

May 7 (Reuters) - ITC Ltd ITC.NS:

• ITC - NCLT SANCTIONS AMALGAMATION OF SRESTA AND WIMCO WITH ITC LIMITED

Source text: ID:nBSE2Z4C0D

Further company coverage: ITC.NS

(([email protected];))

MUMBAI, May 4 (Reuters) - Indian traders have begun exporting wheat for the first time in four years, as a bumper harvest and a rally in global prices and freight rates make shipments of the staple competitive for buyers in Asia and the Middle East, trade sources told Reuters.

Consumer goods conglomerate ITC ITC.NS has started loading 22,000 metric tons of wheat at the western port of Kandla for shipment to the United Arab Emirates, they said.

India, expecting a record crop, has allowed exports of wheat this year following a 2022 ban.

It extended the curb in 2023 and 2024 after extreme heat shrivelled the crop and depleted stocks, leading to record domestic prices, fuelling speculation it might need to turn to imports for the first time since 2017.

(Reporting by Rajendra Jadhav and Mayank Bhardwaj; Editing by Clarence Fernandez)

(([email protected]; Reuters Messaging: x.com/Rajendra1857))

** Shares of ITC ITC.NS up 4% so far this week, on track for biggest weekly percentage gain since July 2024

** Stock trading at 327 rupees on Friday as of 3 p.m. IST, up 0.4%

** Prospects of co hiking cigarette prices to offset impact of excise duty, effective from February 1, lifts shares

** January was ITC's worst month in more than 25 years as stock slid on fears of earnings hit from excise duty impact

** Earlier this week, UBS said ITC's price hikes imminent, expects core earnings to rebound in FY28

** Think valuation has become quite appealing now and a risk

worth taking - UBS

** 35 analysts on average rate the stock "hold", their median PT is 355 rupees - data complied by LSEG

** Stock down 19% YTD

(Reporting by Nishit Navin in Bengaluru)

(([email protected]))

Feb 11 (Reuters) - Indian consumer goods maker Patanjali Foods PAFO.NS reported an almost 60% rise in third-quarter profit on Wednesday, aided by steady edible oils sales and tax cuts that increased consumer demand.

The Sunrich brand oil maker's profit rose to 5.93 billion rupees ($65.33 million) for the three months ended December 31, up from 3.71 billion rupees a year earlier.

Demand for edible oil has remained strong over the past few quarters even as other consumer goods have faced a slowdown, as it is a staple for cooking in the world's most populous country.

Revenue from Patanjali's edible oils segment, which makes up about 70% of the company's total revenue, rose about 9% to 73.36 billion rupees.

That led to nearly 17% growth in overall revenue to 104.84 billion rupees.

“Driven by disciplined execution of our business strategies over recent quarters, the Company achieved its strongest financial performance to date across multiple metrics, even amid a dynamic operating environment," CEO Sanjeev Asthana said.

Revenue from the food and fast-moving consumer goods segment rose nearly 40%, helped by tax cuts.

Indian consumer goods makers such as Britannia BRIT.NS, ITC ITC.NS and Dabur DABU.NS have been seeing a gradual recovery in demand, after several quarters of pressure, aided by the tax cuts and slowing inflation.

Earlier in the month, larger peer Adani Wilmar ADAW.NS reported a slump in quarterly profit as it took a large one-off gain in the year-ago period due to sharp commodity price increases.

($1 = 90.7680 Indian rupees)

(Reporting by Komal Salecha in Bengaluru; Editing by Ronojoy Mazumdar and Tasim Zahid)

(([email protected]; 6354975591))

** Shares of ITC ITC.NS rise 4.9% to 325.45 rupees

** Nearly 13 mln shares in ITC traded across 22 block deals on NSE, with 21 deals at premium of 0.6% to 5.4%, LSEG data shows

** Effective Feb 1, India imposed an excise duty on cigarettes in range of 2,050-8,500 rupees ($22.8-$94.5) per thousand sticks based on length of products

** Other Indian cigarette makers Godfrey Phillips India GDFR.NS and VST Industries VSTI.NS up 10.2% and 4.7%, respectively

** In January, ITC, Godfrey Phillips India, and VST Industries dropped 20.1%, 26.3% and 8.9%, respectively

(Reporting by Vijay Malkar)

(([email protected];))

Feb 5 (Reuters) - Indian paper and packaging board maker JK Paper JKPA.NS posted a 58% drop in quarterly profit on Thursday, weighed down by intensifying competition and a one-off charge linked to the country's new labour codes.

JK Paper, which serves clients across sectors including consumer packaged goods and fast food, said consolidated profit after tax came in at 274 million rupees ($3.03 million) for the third quarter ended December 31.

India's paper and packaging sector, which includes firms such as ITC ITC.NS and JK Paper, has also been under pressure for several quarters due to a surge in low-priced imports, forcing local companies to take price cuts at the expense of margins.

The industry has urged the government to curb low-priced imports of paperboards as well as coated and uncoated paper.

JK Paper also booked a one-off charge of 143.6 million rupees linked to the new labour codes, which have shaved millions off corporate earnings in India for the third quarter.

Revenue from operations rose 8% to 17.63 billion rupees for the third quarter.

The New-Delhi-based company supplies a spate of products including office paper, coated paper, writing and printing paper and packaging boards. It has customers in more than 60 countries, such as the United States and Singapore.

"Some improvement is anticipated in the coming quarter due to improved demand and reduction in input costs," Harsh Pati Singhania, chairman and managing director, said in a statement.

Peers Emami Paper Mills EMAP.NS and West Coast Paper Mills WSTC.NS are yet to report their results.

($1 = 90.3450 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru and Praveen Paramasivam in Chennai; Editing by Ronojoy Mazumdar)

(([email protected]; +91 9558725583;))

** ITC ITC.NS down 20.5% so far in January, set for worst monthly performance since April 2000

** Multiple brokerages downgraded stock citing earnings hit from excise duty on cigarettes effective from Feb 1

** Co reported 10% Q3 profit fall on Thursday, on higher raw material costs, one-time labour code charge

** Dolat Capital downgrades ITC to "reduce" from "accumulate"; cuts PT to 330 rupees from 467 rupees

** Says volume and margins in the cigarette business would remain under pressure

** Stock up 0.6% on the day

** Stock rated "hold" on avg by 34 analysts, median PT at 390 rupees - data compiled by LSEG

($1 = 91.8760 Indian rupees)

(Reporting by Brijesh Patel in Bengaluru)

(([email protected]; Ph no. +91 9590227221;))

Adds segment details in paragraph 7 and background in paragraph 9

Jan 29 (Reuters) - Indian consumer goods conglomerate ITC ITC.NS reported a 10% fall in quarterly profit on Thursday, hurt by higher raw material costs and a one-time charge tied to the country's new labour codes.

The company, which also sells instant noodles and other food products, said its standalone quarterly profit fell to 50.89 billion rupees ($553.68 million) for the quarter ended December 31, from 56.38 billion rupees a year ago.

The company took a one-time charge of 2.74 billion rupees tied to the country's new labour codes.

India's new labour codes — the country's biggest overhaul of workers' laws in decades — have dragged profits of corporate firms across sectors, from Godrej Consumer Products GOCP.NS and Mahindra Holidays and Resorts India MAHH.NS to Wipro WIPR.NS and Infosys INFY.NS.

ITC's total expenses, too, rose 5% to 134.72 billion rupees due in part to higher prices of raw materials including edible oil, wheat and leaf tobacco.

Leaf tobacco prices have climbed in recent quarters at a time when export demand has picked up, weighing on ITC's profitability even as cigarette volumes have held up for India's market leader.

Revenue from the cigarettes business, ITC's largest segment, grew 8% in the third quarter. The company's consumer goods segment, which houses popular household brands such as Aashirvaad flour, Sunfeast biscuits and Yippee noodles, grew 11%.

Overall revenue rose 6% to 193.59 billion rupees.

However, ITC faces further pressure as India has imposed excise duty on cigarettes in addition to a 40% goods and services tax in a move that could increase prices of cigarettes for an estimated 100 million smokers in the country.

"Such a steep increase will provide further impetus to illicit trade," ITC said in a statement.

($1 = 91.9130 Indian rupees)

(Reporting by Komal Salecha in Bengaluru and Praveen Paramasivam in Chennai; Editing by Janane Venkatraman and Shailesh Kuber)

(([email protected];))

Adds details about recent management changes from paragraph 2 onwards

Jan 16 (Reuters) - India's Grasim Industries GRAS.NS on Friday named Sachin Sahay as the new chief executive of its paints business, Birla Opus.

Sahay's appointment comes more than two months after the textiles and chemicals manufacturer announced former CEO Rakshit Hargave's sudden departure, surprising analysts and stoking worries about the company's future growth path in a sector where competition is intensifying rapidly.

Since its launch in February 2024, Birla Opus has invested heavily in paint factories across India as well as offered hefty discounts, gaining ground mainly at the expense of market leader Asian Paints ASPN.NS.

Sahay, who will take charge of India's second-largest paints maker by capacity from February 16, joins from diversified conglomerate ITC ITC.NS, where he last served as executive vice president of sales.

(Reporting by Hritam Mukherjee and Abhirami G in Bengaluru; Editing by Janane Venkatraman)

(([email protected]; X: @MukherjeeHritam;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to add hyperlinks.

By Ujjaini Dutta

BENGALURU, Jan 12 (Reuters Breakingviews) - Sometimes smokers are hit with a compelling reason to quit. India imposed fresh taxes on cigarettes last month, knocking as much as 17% off the shares of British American Tobacco BATS.L-backed $47 billion ITC ITC.NS and Godfrey Phillips India GDFR.NS which makes and sells Marlboro cigarettes under license with Philip Morris International PM.N. Foreign ownership limits and a ban on vaping had already dented the appeal of a market with 253 million tobacco users. The latest tax jolt is another nail in the coffin for overseas investment in the country.

Around the world, tobacco majors are shifting their focus to alternative products like e-cigarettes on the expectation that cigarette volumes will continue to decline on health concerns and tougher regulations. India's 2019 ban on e-sticks and heated tobacco products makes such a shift difficult for companies in the world's fifth-largest economy. The new excise duty only worsens the outlook.

Tobacco companies are well used to being slapped with sin taxes when government revenues need patching up. Smokes were already subject to a 40% levy following a rejig of goods and services taxes last year. The latest hike pushes the total tax on cigarettes to about 50%, according to brokerage Motilal Oswal. Analysts responded by revising down ITC's expected cigarette sales 13% lower for the next two full financial years, per S&P Global. Rather than quitting, though, most customers will simply downtrade to illicit smokes available in the black market.

Little wonder that BAT has been paring its stake in ITC, despite its 75% share by units of India's formal cigarette market. It has trimmed its 30% holding down to 23% over the past two years, joining other multinational companies in disposing their highly valued equity interests in the country to raise funds for their global business. Despite the tax hit, ITC trades on a rich 21 times one-year forward earnings, twice BAT's multiple, according to LSEG data. Indian cigarette makers are also less profitable, with ITC's net margin trailing its foreign partner's by four percentage points and Godfrey Phillips' roughly half, per Visible Alpha.

Smoking isn't good for you. India is succeeding in making it undesirable, even for corporations who are addicted to the stuff.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

India will levy an additional excise duty on cigarettes in the range of 2,050 to 8,500 rupees ($22.8 to $94.5) per 1,000 sticks, depending on length, the finance ministry announced late on December 31. The revised dues will take effect on February 1. The new tax will apply in addition to an existing 40% Goods and Services Tax.

Shares of India’s ITC, the $47 billion conglomerate backed by British American Tobacco, fell as much as 9.7% on January 1, while Godfrey Phillips India, the distributor of Marlboro in the country, dropped 17%.

(Editing by Una Galani and Antony Currie; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

** At least six brokerages, including JP Morgan and Jefferies, downgrade their ratings on ITC's ITC.NS shares as new tax on cigarettes seen hitting earnings growth and weighing on stock multiples

** Stock tanked 9.7% on Thursday to close at its lowest since April 2023

VALUATION MULTIPLES TO RESET AFTER UNPRECEDENTED TAX HIKE

** JP Morgan (downgrades to "neutral", PT cut to 375 rupees) says tax hike to impact volumes, earnings growth and weigh on stock multiples, restricting upside in stock for next 6 to 9 months

** Jefferies (downgrades to "hold", PT cut to 400 rupees) says ITC may need about 40% price hikes to pass on the impact of tax hike, which will impact volumes

** Motilal Oswal Financial Services (downgrades to "neutral", PT at 400 rupees) says such a sharp tax increase is unprecedented and has surprised the brokerage firm given the backdrop of stable taxes over the last few years

** Nuvama (downgrades to "hold", PT at 415 rupees) says a double-digit tax hike could push consumers towards smuggled cigarettes; adds historically volumes have dropped 3%-9% after sharp hike in taxes

(Reporting by Vivek Kumar M)

(([email protected];))

Adds brokerage comment in paragraph 6; updates shares

Jan 1 (Reuters) - Shares of Indian tobacco companies slumped on Thursday after the government imposed a new tax on cigarettes, making them costlier for an estimated 100 million smokers in the world's most populous country.

ITC ITC.NS, maker of Gold Flake and the market leader, fell 9.2%, while Godfrey Phillips India GDFR.NS, the distributor of Marlboro in the country, tanked 14.1%.

Shares of ITC were trading at 365.50 rupees, their lowest level since April 2023, and were also on track for their worst day in nearly six years. Godfrey Phillips was set for its steepest fall since November 2016.

ITC was the biggest loser on the Nifty 50 index .NSEI and also led declines on the FMCG index .NIFTYFMCG, which was trading 3.2% lower.

India's finance ministry late on Wednesday notified an excise duty of 2,050–8,500 rupees ($22.82–$94.60) per 1,000 sticks, depending on cigarette length, effective February 1.

Jefferies analysts called the move "a clear negative," saying it would hurt sales volumes and revive concerns about losing share to the illicit industry.

Health issues tied to smoking are seen as a major drain on India's resources, and the government has introduced steps, including larger warning labels and periodic tax adjustments, to curb consumption.

While the government has not specified the impact of the duty change on retail prices, analysts say higher taxes could prompt companies to raise prices.

The duty translates into a 22%-28% increase in overall costs for 75-85 mm cigarettes, analysts at ICICI Securities said.

"Cigarettes longer than 75 mm account for roughly 16% of ITC's volumes and are likely to see price increases of 2–3 rupees per stick as a result of the levy," they said.

The new tax will apply in addition to the existing 40% Goods and Services Tax, the order showed.

($1 = 89.8510 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru; Editing by Rashmi Aich)

(([email protected]; 8800437922;))

Adds background, details from paragraph 2

NEW DELHI, Dec 31 (Reuters) - India has imposed an excise duty on cigarettes in a range of 2,050-8,500 rupees ($22.8-$94.5) per thousand sticks based on the length of the products, effective February 1, the finance ministry said in an order late on Wednesday.

The move could increase prices of cigarettes for an estimated 100 million smokers in the world's most populous country.

In December, the Indian government approved a new law - the Central Excise (Amendment) Bill 2025 - that replaces a temporary levy on cigarettes and tobacco products.

The excise duty would be imposed on cigarettes in addition to a 40% goods and services tax, the order issued late on Wednesday showed.

Total taxes on cigarettes in India currently make up about 53% of retail prices, well below the World Health Organization benchmark of 75% aimed at discouraging consumption. This includes a 28% goods and services tax and additional value based levy based on the size of the cigarettes.

The higher levies could impact sales of cigarettes manufacturers like ITC ITC.NS and Godfrey Phillips India GDFR.NS.

(Reporting by Nikunj Ohri, Chris Thomas; editing by Diane Craft)

(([email protected]; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))

Rewrites throughout with stake value, background on ITC Hotels and share price

Dec 4 (Reuters) - British American Tobacco BATS.L plans to offload its stake worth about $776 million in India's ITC Hotels ITCT.NS, the company said on Thursday, as it looks to reduce debt and exit a non-strategic asset.

The maker of Lucky Strike and Dunhill cigarettes said it intends to sell between 7% and its entire 15.3% stake in ITC Hotels through an accelerated bookbuild process.

BAT is the second-biggest shareholder in ITC Hotels, according to LSEG data. It inherited the stake through its shareholding in ITC Ltd ITC.NS, which spun off its hotels business in January.

"A direct stake in ITC Hotels is not a strategic holding for BAT," CEO Tadeu Marroco said in a statement.

BAT's shares rose 1.5% after the announcement, while India-listed ITC Hotels ended the session roughly flat.

The final number of shares sold will be determined to optimise the overall pricing outcome to the group, BAT said in a statement.

Its roughly 15% holding is currently valued at about $776 million, according to a Reuters calculation.

In a bid to cut its leverage, BAT has also been steadily reducing its stake in ITC Ltd ITC.NS. In May, it sold $1.5 billion worth of shares in ITC and $2 billion last year, in two of the biggest block deals in the Asian country.

ITC Hotels competes with EIH EIHO.NS, parent of Oberoi, and Indian Hotels IHTL.NS which owns the Taj brand. Its portfolio spans luxury to mid-scale segments across six brands.

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Shailesh Kuber and Bernadette Baum)

(([email protected];))

Corrects dateline

Oct 30 (Reuters) - Indian consumer goods major ITC ITC.NS posted a better-than-expected second-quarter profit on Thursday, helped by higher sales volumes in its core cigarette business.

The maker of 'Sunfeast' biscuits and 'Gold Flake' cigarettes reported a 5.4% rise in standalone profit of 51.80 billion rupees ($589.34 million) for the quarter ended September 30.

Analysts, on average, had expected a profit of 50.71 billion rupees, according to data compiled by LSEG.

($1 = 87.8950 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru)

(([email protected];))

- Source link: (https://tinyurl.com/2zces3b6)

- Note: Reuters has not verified this story and does not vouch for its accuracy

(Bengaluru newsroom)

(([email protected]; +91 80 6749 1310;))

Adds new quotes

Sept 4 (Reuters) - India late on Wednesday announced tax cuts on hundreds of consumer items ranging from soaps to small cars to spur domestic demand, and simplified its complicated goods and services tax structure to two rate slabs from four, with some exceptions for luxury and "sin" goods.

The benchmark BSE Sensex .BSESN and Nifty 50 .NSEI rose 0.8% each in early sessions.

Here is how the industry has reacted so far:

ANISH SHAH, GROUP CEO & MD, MAHINDRA GROUP

"The next-generation GST reforms... mark a defining moment in India's journey towards building a simpler, fairer, and more inclusive tax system.

At Mahindra, we view these reforms as transformative. They simplify compliance, expand affordability, and energise consumption, while enabling industry to invest with greater confidence."

SAURABH AGARWAL, PARTNER & AUTOMOTIVE TAX LEADER, EY INDIA

"The rationalization of GST rates on automotive vehicles and parts is a truly welcome and significant development. By making vehicles more affordable across all segments, this move will not only boost consumer spending but also simplify complex classification disputes that have long burdened the industry."

SAMIR SHAH, EXECUTIVE DIRECTOR & CFO, HDFC ERGO GENERAL INSURANCE COMPANY

"The GST Council decision to exempt individual health insurance from GST is a welcome development. This move aligns perfectly with the broader ambition of the regulator of 'Insurance for All by 2047,' providing a tangible step forward in that direction.

While it is anticipated that there will be lowering of the premiums due to lowering of the taxes, we are yet to understand the extent of this reduction as this will also depend upon availability of the input tax credit, which will become clearer over the coming days.”

NILESH SHAH, MANAGING DIRECTOR, KOTAK MAHINDRA ASSET MANAGEMENT CO

"The GST announcement lowers inflation, increases growth, boosts consumer sentiment, doesn't disturb the path of fiscal consolidation, improves ease of doing business and partially offers adverse effects of tariffs."

SHAILESH CHANDRA, PRESIDENT SOCIETY OF INDIAN AUTOMOBILE MANUFACTURES

"This timely move is set to bring renewed cheer to consumers and inject fresh momentum into the Indian Automotive sector. Making vehicles more affordable, particularly in the entry-level segment; these announcements will significantly benefit

first-time buyers and middle-income families, enabling broader access to personal mobility."

C S VIGNESHWAR, PRESIDENT, FEDERATION OF AUTOMOBILE DEALERS ASSOCIATIONS

"The 56th GST Council meeting marks a watershed moment for India's automobile retail industry. This is a decisive step that will boost affordability, spur demand, and make India's mobility ecosystem stronger and more inclusive.

One area that may needs earliest clarification is about levy and treatment of cess balances currently lying in dealers' books, so that there is no ambiguity during transition."

SANJEEV ASTHANA, CEO, PATANJALI FOODS LIMITED.

"At Patanjali Foods, we are fully committed to passing on these benefits to our consumers. This initiative will not only enhance FMCG penetration across urban and rural India but also act as a catalyst for broader economic revival by lifting consumption and supporting allied sectors.

Our categories such as ghee, soaps, biscuits, noodles, honey, and chyawanprash will benefit from this reduction."

RADHIKA RAO, SENIOR ECONOMIST AT DBS BANK IN SINGAPORE

Lower GST rates will be positive for growth in the second half of the year and FY27, besides improving operational efficiency and expanding the size of the formal economy.

GARIMA KAPOOR, ECONOMIST, INSTITUTIONAL EQUITIES, ELARA SECURITIES, MUMBAI

"We expect GST related demand boost to add 100 to 120 bps to the GDP growth over next 4-6 quarters, thereby nullifying the negative impact of higher tariffs on exports to US. We remain constructive on the uptick in consumption demand in the economy as multiple policy levers turn favourable for the first time in a decade."

SHRIPAL SHAH, MD & CEO, KOTAK SECURITIES

"The GST rate cuts come at the right time which is just ahead of the festive season and against the backdrop of US tariff tiffs. Lower taxes on essentials, FMCG products, autos and cement will leave consumers with more money in hand.

This should directly boost demand, help traders and businesses see higher volumes, and may even favourably impact next quarter's earnings. It also carries the potential to ease inflation. The key will be how quickly companies pass on the benefits to customers."

DEVARSH VAKIL, HEAD OF PRIME RESEARCH AT HDFC SECURITIES

"The GST reforms represent a paradigm shift toward economic rationality, with rate reductions on essentials like dairy, medicines, and food directly benefiting consumers due to their inelastic nature.

Combined with RBI rate cuts, FY26 income tax rebates, and moderating inflation, these reforms create multiple stimuli for consumption and economic growth."

(Reporting by Chandini Monnappa, Bharath Rajeswaran and Manvi Pant in Bengaluru; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)

(([email protected]; https://www.linkedin.com/in/chandini-monnappa-8a37b013b/;))

** Jefferies says India's overall tax burden on cigarettes may not change, which would be a relief for ITC ITC.NS

** India's GST Council is set to meet on September 3-4 to decide on tax cuts across several categories

** Cigarettes make up about 40% of revenue of diversified conglomerate ITC

** Brokerage says while overall tax burden on cigarettes may not change for ITC, there is a possibility that the salience/mix of ad valorem or specific cess may change

** Maintains "buy" rating on ITC but expects stock to be rangebound "until there is clarity on the revised tax regulations" - Jefferies

** Keeps PT at 535 rupees, ~32% higher than current price

** Avg rating of 37 analysts is "buy", median PT is 496 rupees, ~22% higher than current price - data compiled by LSEG

** YTD, ITC down ~11%

(Reporting by Anuran Sadhu in Bengaluru)

(([email protected]; +91 8697274436;))

** Indian conglomerate ITC ITC.NS reported a beat first-quarter profit view on Friday, led by higher sales of cigarettes and packaged food, particularly in rural areas

** Shares trading 0.7% higher, top gainer on FMCG index .NIFTYFMCG which is trading flat

CIGARETTE VOLUME STRONG; PROFIT IMPACTED BY COMPETITON

** Citi ("Buy", PT: 500 rupees) says it sees continued stead volume growth in cigarettes business but intensifying competition and high-cost leaf tobacco could keep margins under pressure in near-term

** Jefferies ("Buy", PT: 535 rupees) says while ITC's cigarette volumes rose to a multi-quarter high, margins continued to trend down

** Brokerage adds high-cost lead tobacco inventory, along with weak pricing growth due to stiff competition, remains a concern

** HSBC ("Buy", PT: 510 rupees) says the cigarette business remained steady during Q1, with other segments being muted

** Brokerage pares FY26-28 EPS estimates by 2-3%, factoring in lower margins in ITC's business segments

(Reporting by Kashish Tandon in Bengaluru)

((kashish.tandon[email protected]; Mobile: +91 8800437922))

Aug 1 (Reuters) - ITC Ltd ITC.NS:

• ITC Q1 PROFIT 49.12 BILLION RUPEES; IBES EST. 49.1 BILLION RUPEES

• ITC Q1 REVENUE FROM OPERATIONS 210.59 BILLION RUPEES

Further company coverage: ITC.NS

(([email protected];))

Updates

** Consumer staple producers Colgate-Palmolive India COLG.NS and Dabur DABU.NS close 1% higher

** Indian government considering eliminating the 12% goods and services tax slab and reclassifying many items taxed at that bracket into the lower 5% bracket, NDTV reports

** Restructuring would target items such as toothpastes, umbrellas, sewing machines, kitchen utensils, report says

** Meanwhile, cigarette makers ITC ITC.NS and Godfrey Phillips GDFR.NS close 0.5% and 0.3% down, respectively

** NDTV reports separately that GST on cigarettes, carbonated drinks and high end cars may go up

** A proposal to replace compensation cess with health and green cess is under consideration, report adds

** YTD, COLG shares down ~9% while Dabur down 3.8%

(Reporting by Ananta Agarwal in Bengaluru)

(([email protected]))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.

By Shritama Bose

MUMBAI, June 27 (Reuters Breakingviews) - What’s good for Indian tycoons is not always good for India. Dutch paint maker AkzoNobel AKZO.AS is selling a controlling stake in its local unit to the domestic JSW Group. The deal fits into its goal to focus its global portfolio amid a hypercompetitive market – but it also deepens India’s capital outflow woes.

The $12 billion maker of the Dulux paint brand on Friday said it would offload up to a 75% stake in Akzo Nobel India to privately held JSW Paints for $1.1 billion. It will retain full control over its local powder coatings business and research unit. The proceeds from the sale will be used to cut debt and buy back shares of the parent.

The transaction comes at an opportune time for AkzoNobel, which decided last October to concentrate on coatings in key geographies. It eases the company away from a market shaken up by the entry last year of local tycoon KM Birla’s Grasim Industries GRAS.NS, whose discounts to grab market share are hurting the margins of incumbents. It makes financial sense too, valuing Akzo Nobel India at 22 times EBITDA, more than twice the multiple at which the parent’s Amsterdam-listed shares trade.

Inspired by these sorts of punchy valuations, multinationals in India have been paring stakes in local units. British American Tobacco BATS.L sold shares in ITC ITC.NS to raise $1.5 billion last month, and U.S. appliance maker Whirlpool WHR.N plans to slash its stake in its Indian business to 20% from 51%. Less benign reasons underpin other transactions. Germany’s Siemens sold 90% in its loss-making wind turbine division to TPG amidst cutthroat competition. Swiss drugmaker Novartis is looking for a buyer for its Indian operations, which it says are relatively small compared to other geographies.

The slate of assets on offer bodes well for Indian founders looking to grow through acquisitions. But it undermines India’s vaunted position as a haven for global capital. Net foreign direct investment during the eight months to the end of November 2024 dropped to $500 million from $8.5 billion in the same period of 2023, per data from the Reserve Bank of India. Blame it on repatriations by global firms, which stood at $44.5 billion for the 12 months ended March 2024, having risen every year since March 2020.

Strong valuations aren’t exactly bad news. But if they wind up making India look less of a magnet for global capital, they’re not uniformly good news either.

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CONTEXT NEWS

Dutch paint manufacturer AkzoNobel on June 27 said it had signed an agreement to sell up to a 75% stake in its Indian unit to privately held JSW Paints. The transaction is based on a total enterprise value of approximately 1.4 billion euros ($1.64 billion) and includes AkzoNobel’s liquid paints and coatings business in India.

The Amsterdam-listed company expects the net cash proceeds to be approximately 900 million euros, of which around 500 million euros will be used for deleveraging. AkzoNobel intends to launch a 400 million euro share buyback programme after the deal is closed.

“This divestment is a first step in the strategic portfolio review announced in October 2024, aimed at focusing the company’s capital and capabilities on leading positions in key global coatings markets,” AkzoNobel said.

Akzo Nobel India shares were up 8.2% as of 0852 GMT on June 27. AkzoNobel group shares were up 0.2%.

(Editing by George Hay; Production by Oliver Taslic)

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June 13 (Reuters) - ITC Ltd ITC.NS:

• ITC LTD - BUYS ENTIRE SHARE CAPITAL OF SRESTA NATURAL BIOPRODUCTS

• ITC LTD - ACQUISITION MADE FOR 4 BILLION RUPEES CASH-FREE DEBT-FREE

• ITC LTD - ADDITIONAL CONSIDERATION OF UP TO 725 MILLION RUPEES PAYABLE IN 24 MONTHS

Source text: ID:nNSE7Kzyn6

Further company coverage: ITC.NS

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May 27 (Reuters) -

• BAT TO SELL $1.36 BILLION STAKE IN INDIAN TOBACCO MAKER ITC - BLOOMBERG NEWS

Source text: https://tinyurl.com/yenh4b8d

Further company coverage: BATS.L

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** ITC ITC.NS reports higher Q4 profit on cigarettes business growth, rural market strength

** Stock up 1.2% to 431 rupees

** Of 37 analysts covering stock, at least seven cut PTs post results, three downgraded stock and five upgraded, per data compiled by LSEG

PRESSURES HAVE PEAKED, UPWARDS FROM HERE

** JP Morgan ("overweight"; PT 475 rupees): Q4 core profit in line with brokerage's estimate; better-than-expected cigarette sales volume growth

** Goldman Sachs ("buy"): Cigarette sales growth "steady"; margin pressure across cigarettes and FMCG "has peaked"

** BofA Securities ("buy", PT 470 rupees): Expects reversal of inflation trends in FMCG, cyclical downturn in paper segment over next 2-3 months to drive better earnings growth

** Investec ("buy", cuts PT to 493 rupees from 498 rupees): Expects ITC to get back to double digit earnings growth in FY26 with sequential improvement across segments

** Sees lower margins in FMCG, cigarettes, but risk reward is favorable

(Reporting by Hritam Mukherjee in Bengaluru)

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May 22 (Reuters) - Indian consumer goods major ITC ITC.NS reported a rise in fourth-quarter profit on Thursday, benefiting from resilient rural demand.

The maker of "Yippee" instant noodles and "Gold Flake" cigarettes reported a standalone profit before tax and exceptional items of 64.17 billion Indian rupees ($746.48 million) for the quarter ended March 31, compared with 62.88 billion rupees a year earlier.

(Reporting by Ananta Agarwal and Shivani Tanna in Bengaluru; Editing by Shilpi Majumdar)

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