ITC's cigarette volume growth hits margins in Q4; stock falls 2.6%

Net profit growth of 19 per cent was ahead of estimates led by higher other income

Even as ITC posted higher-than-expected top line and net profit figures for the March 2019 quarter (Q4), investors were disappointed due to lower profitability. The ITC stock shed 2.6 per cent to close at Rs 289.85 in a weak market (the S&P BSE Sensex was down about 1 per cent).

While ITC’s top line grew by 13.1 per cent year-on-year to Rs 11,850 crore in Q4, its net profit was up 18.7 per cent to Rs 3,482 crore, ahead of Bloomberg consensus estimates of Rs 11,822 crore and Rs 3,242 crore, respectively. What hurt investors, despite a strong 8 per cent