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Companies

India's ITC beats profit estimates on lower taxes and rising cigarette demand

Tobacco business grows 6% in second quarter

MUMBAI (NewsRise) -- ITC, India's largest cigarette maker, reported a better-than-expected 36% jump in second-quarter net profit, helped by lower tax expenses and strong growth in tobacco business.

ITC, also known for its Maurya luxury hotel chain, has been driving its growth on the margins of its cigarette business, which is rebounding from a prolonged period of tax increases that spurred illegal trade, and a regulatory clampdown on smoking. Prime Minister Narendra Modi's government cut corporate taxes by eight percentage points to 22% in September, a move that has triggered a sharp rebound in the profitability of domestic companies.

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