India: Godfrey Phillips Rallies 10% As Q1 Profit Jumps over Three-fold

Source from:  sharekhan.com 08/05/2014

Shares of Godfrey Phillips India surged 10% to Rs2,895 after reporting a over three-fold jump in net profit at Rs80 crore for the first quarter ended June 30, 2014 (Q1), mainly due to lower employee cost and advertisement expenses. The cigarettes and tobacco products maker had profit of Rs23 crore in the same quarter last year.

Net sales grew 13.8% at Rs683 crore during the quarter under review against Rs600 crore in the corresponding quarter of previous fiscal. Total expenditure increased by 4% to Rs583 crore from Rs559 crore.

The company said that the increase in excise duty on cigarettes in the ranged of 11 to 72% in the Union Budget presented on July 10, 2014, which may have bearing on the financial performance of the company in the remaining part of the year. Enditem