Cigarette maker Godfrey Phillips India on Friday reported a dip in its quarterly pre-tax profit, contributed by a sharp rise in expenses.
The company’s share dropped 9.2 per cent after the results.
The company, which manufactures and distributes Marlboro cigarettes under a license agreement with Philip Morris International, stated that profit before tax in the second quarter dropped 8.2 per cent to Rs 2.19 billion, as expenses increased nearly 20 per cent.
Total revenue from operations grew 15.4 per cent to Rs 13.75 billion, with revenue from its profitable division which sells cigarettes, tobacco and related products rose 16.6 per cent.
Revenue from its round-the-clock convenience store, 24Seven and confectionary sales increased 4.3 per cent to Rs 1.17 billion but recorded a pre-tax loss of Rs 158.9 million.
