Our new website is coming soon, give it a try now and let us have your feedback. Take me to the Beta

Email Facebook Twitter

TSX Lithium explorer International Lithium Corp prepares to drill at Raleigh Lake
Exclusive: Hardman & Co Investor Forum - Severn Trent, Calculus Capital, Volta Finance, Residential

British American Tobacco Share News (BATS)

Stock Market news at lse.co.uk - RSS News Feeds

Share News for British American Tobacco (BATS)

Share Price: 2,859.50Bid: 2,870.50Ask: 2,871.50Change: 19.50 (+0.69%)Riser - Br.amer.tob.
Spread: 1.00Spread as %: 0.03%Open: 2,840.00High: 2,888.00Low: 2,836.00Yesterday’s Close: 2,840.00

UPDATE 1-India's ITC Q2 profit up 22 pct, cigarette volume growth stagnant

Fri, 19th Oct 2012 10:51

MUMBAI, Oct 19 (Reuters) - Tobacco firm ITC Ltd, which makes four out of e
very five cigarettes sold in India, met estimates with a 22 percent rise in quarterly profit as higher sales prices for its smokes protected margins from stagnant volume growth.

The company, India's fourth biggest by market capitalisation, has raised prices by around 15 percent since the start of this year to offset the impact of higher taxes and tighter anti-smoking regulations in several Indian states.

These taxes and laws have restricted volume growth, which was almost flat with only a 0.3-0.4 percent increase after a decline in the previous quarter, according to three analysts briefed by the company on its quarterly results.

The company's net profit rose to 18.36 billion rupees ($345.60 million) for the quarter ended Sept. 30, up from 15.1 billion rupees a year earlier.

'The results are good but I am not jumping on this performance ... volume growth is still looking like a struggle,' said an analyst with a foreign brokerage who spoke on condition of anonymity.

ITC does not provide details of sales volumes in its earnings statements.

ITC, which is 30.8 percent owned by British American Tobacco PLC, generates about half its revenue from cigarettes.

As Indian anti-smoking laws tighten, that core business is coming under greater pressure, and the firm is stepping up its efforts to move into other product categories.

'They have stepped up their diversification plans recently so that is a positive. They are going in the right direction,' said G. Chokkalingam, executive director and chief investment officer at Centrum Wealth Management, who has been buying the stock for the past three months.

'In a few years we expect cigarettes to be a small part of the business,' he said.

ITC, which also owns hotels and makes products including soap and shampoo, said net sales from its non-cigarette consumer business grew 26 percent to 17 billion rupees.

Shares in ITC, a staple among fund portfolios which consider it recession-proof, extended gains and rose as much as 2.2 percent after the results, the latest in a recent series of intra-day highs of 298 rupees.

The stock trades at 26.3 times its 12-month forward earnings, compared with peers Hindustan Unilever's 33.1 times, and Godrej Consumer's 24.4 times, according to Thomson Reuters Starmine Smart Estimate.

(Reporting by Nandita Bose; Editing by Daniel Magnowski) Keywords: ITC INDIA/RESULTS

(nandita.bose@thomsonreuters.com)(+91 22-66367374)(Reuters Messaging: nandita.bose.reuters.com@reuters.net)

Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

UPDATE 2-FTSE 100 marks best week in 4 months; buyout offer lifts Millennium & Copthorne

* FTSE 100 up 1%; FTSE 250 up 0.9%* Disappointing U.S. jobs data raises rate cut hopes* Millennium & Copthorne surges after buyout offer* Ferrexpo ris
[7 Jun '19 09:29]

UPDATE 2-FTSE felled by Trump tariff threat, China data gloom

* FTSE 100 down 0.8%, FTSE 250 down 0.7%* Threat of tariffs on Mexico hits financials, miners* Recession fears make safe haven assets desirable* House
[31 May '19 08:57]

UPDATE 2-FTSE 100 gains as sterling slips on renewed hard Brexit concerns

* FTSE 100 up 0.5%, FTSE 250 up 0.9%* Exporter stocks gain after sterling slips* Mid-cap FirstGroup hits near 2-yr high* Daily Mail publisher surges o
[30 May '19 09:02]

LIVE MARKETS-Closing snapshot: May mayhem continues

* STOXX 600 hits lowest since March 11 as trade row grows * Pan European index closed 1.4% lower * China threatens to retaliate using its vast
[29 May '19 16:47]


* STOXX 600 hits lowest since March 11 as trade row grows * Pan European index now down 1.4% * China threatens to retaliate using its vast rar
[29 May '19 12:34]

UPDATE 2-Worsening trade conflict drags down London's FTSE 100

* FTSE 100 down 1.2%, FTSE 250 down 1.4%* Stobart up among mid-caps after results* Mining shares retreat after two days of gains* Oil majors weighed d
[29 May '19 09:33]

Chinese broadside weakens UK shares, miners hit

(For a live blog on European stocks, type LIVE/ in an Eikon news window)* FTSE 100, FTSE 250 down 0.7%* AVEVA, Stobart up among mid-caps after results
[29 May '19 08:26]

UPDATE 2-FTSE 100 chokes as tobacco firms fall on sales report, drugmakers dip

* FTSE 100 down 0.1%, FTSE 250 up 0.4%* Tobacco cos, drugmakers lead losses on main index* NMC up after hiking FY forecast* Galliford gains after snub
[28 May '19 09:29]

Share Price, Share Chat, Stock Market news at lse.co.uk
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at lse.co.uk

Home  |  Contact Us  |  About Us  |  Advertise with Us  |  Sitemap  |  Terms & Conditions  |  Cookies  |  Privacy  |  Mobile Site  |  About this website design

Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.