Godfrey Phillips slides after board decides to exit retail business division, 24Seven

Godfrey Phillips India declined 1.75% to Rs 3,040 after the company's board has decided to exit from carrying out the business operations of its retail business division being operated under the name 24Seven.

The company decided to exit from 24Seven with due consideration of the stakeholders feedback, long-term performance of the division since inception, prevailing market conditions of retail sector and long-term business strategy of the company.

As per the latest available audited financial statements, the revenue from operations for the retail business division for FY 22-23 was at Rs 396 crore, being 9.3% of the total revenue from operations for the company and the retail business division had a negative net worth as on 31 March 2023 on account of accumulated losses generated by it.

Godfrey Philips, has business presence in manufacturing of cigarettes, chewing products & tobacco products, trading of cigarettes, tobacco products, tea & other retail products, trading & distribution of vaping products, acquisition of securities and real estate development.

The cigarette maker reported 6.6% growth in consolidated net profit of Rs 212.35 crore in Q3 FY24 as against Rs 199.25 crore posted in Q3 FY23. Revenue from operations jumped by 36% YoY to Rs 1,235.40 crore in the quarter ended 31 December 2023.

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