Indian cigarette maker Godfrey Phillips GDFR.NS on Monday reported a 44% slide in first-quarter profit as tax hikes imposed in January hit the Marlboro maker's margins in its core business.
The company, which makes and sells Marlboro cigarettes in India under a license with Philip Morris International PM.N, said its consolidated net profit fell to 1.98 billion rupees ($20.64 million) from 3.56 billion rupees last year.
Expenses related to excise duties surged nearly eightfold to 26 billion rupees during the quarter.
Revenue from cigarettes, tobacco and related products, which makes up almost the total and is the company's largest segment, more than doubled to 37.8 billion rupees.
India cigarette excise duty took effect in February
India imposed an excise duty on cigarettes ranging from 2,050 to 8,500 rupees per thousand cigarettes, depending on product length, which came into effect on February 1.
The tax led to higher cigarette prices for an estimated 100 million smokers in the country.
PM•
