Godfrey Phillips surges 10% as Q1 profit jumps over three-fold

Q1 net profit jumped to Rs 80 crore against Rs 23 crore in the corresponding quarter of previous fiscal

Godfrey Phillips India has surged 10% to Rs 2,895 after reporting a over three-fold jump in net profit at Rs 80 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 Rs 23 crore in the same quarter last year.

Net sales grew 13.8% at Rs 683 crore during the quarter under review against Rs 600 crore in the corresponding quarter of previous fiscal. Total expenditure increased by 4% to Rs 583 crore from Rs 559 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.

The stock opened at Rs 2,931 and touched a high of Rs 3,090 on National Stock Exchange (NSE). A combined 33,000 shares changed hands on the counter till noon deals on NSE and BSE.