Godfrey Phillips posts Q1 net profit of Rs 567 million on lower expenses

The company had posted a net loss of Rs 31 million in the same quarter of the previous fiscal

Cigarette maker Godfrey Phillips India today clocked a standalone net profit of Rs 56.74 crore for the first quarter of this fiscal due to lower expenses.

The company had posted a net loss of Rs 3.14 crore in the same quarter of the previous fiscal, as per the regulatory filing.

Net income declined to Rs 608.68 crore during April-June quarter of the 2018-19 fiscal from Rs 1,052.76 crore in the year-ago period.

But the company's expenses reduced substantially to Rs 524.77 crore from Rs 1,057.67 crore in the said period.

Since central excise has been subsumed into GST, Godfrey Phillips India said the levies like GST, GST compensation cess and value added tax (VAT) are not included in revenue from the sale of products and services.

"Accordingly, revenue from sale of products and services and excise duty for the quarter ended June 30, 2018 are not comparable with the previous periods," it added.

The Board has recommended a dividend of Rs 8 per equity share of Rs 2 each for the 2017-18 fiscal, which will be taken up at the forthcoming AGM to be held on September 25.