ITC investors fume over slower growth in Oct-Dec quarter, higher taxes

Investor concerns are not without reason, considering the cigarette business accounted for 84.7% of ITC's consolidated earnings before interest and tax in 2018-19

ITC, which is known to not only bounce back stronger from adverse situations but also take on the might of large multinationals, is once again being put to test. It is not only the slower growth for the December quarter (Q3) that indicates near-term pressure for the company; there are headwinds that cloud ITC’s medium-term prospects as well.

Investor concerns are not without reason, considering the cigarette business accounted for 84.7 per cent of ITC’s consolidated earnings before interest and tax (Ebit) in 2018-19.

In Q3, too, the company posted a mere 5.7 per cent increase in consolidated revenue, with