Shares of Godfrey Phillips India Ltd. fell over 6% after the company reported a weak performance for the first quarter, with consolidated net profit falling more than 44% year-on-year amid a sharp decline in revenue and operating profitability. The stock opened in negative 3.31% trading at Rs 2137.40 after which it fell further.
The company's consolidated net profit declined 44.3% to Rs 198 crore in Q1, compared with Rs 356 crore in the corresponding quarter last year.
Revenue from operations fell 19% year-on-year to Rs 1,206 crore from Rs 1,486 crore in the year-ago period. The operating performance also weakened significantly during the quarter. Ebitda dropped 46.2% to Rs 182 crore, compared with Rs 338 crore a year earlier.
"Due to the steep tax increase implemented in Q4 of FY26, the profitability has declined by 44% compared to the corresponding period last year," said its Chief Executive Officer Sharad Aggarwal in the earnings statement of the company.
Aggarwal said despite significant tax-led price increases, "our domestic cigarette sales volume declined by only 2 per cent" during the quarter over the corresponding period of last year, reflecting the resilience of our brands and distribution network.
Godfrey Phillips India is the flagship company of Modi Enterprises. It makes popular cigarette brands like Four Square, Red and White, Cavanders, Tipper and North Pole. It also manufactures and distributes the brand Marlboro under a license agreement with Philip Morris.
Godfrey Phillips India Ltd. Share Price Today
Godfrey Phillips India Ltd. Share Price Today
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The scrip fell as much as 6.40% to Rs 2,069 apiece on Tuesday at 9:26 am. This compares to a 0.02% rise in the NSE Nifty 50 Index.
It has fallen 28.27% in the last 12 months and 24.80% year-to-date. Total traded volume so far in the day stood at 0.27 times its 30-day average. The relative strength index was at 58.15.
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