ITC's budget cigarette brand sales to rise under GST regime

Firm's sales volume to suffer a hit but its operating margins, profitability to remain stable

Sales of ITC Ltd’s budget cigarette brands in the 64 mm category is likely to go up as people are projected to downgrade purchases from the 69 mm category post the recent 6-7 per cent price hike as a result of higher taxes under the GST regime. Although analysts project the company is likely to suffer a decline in its sales volume, operational margins of the company are poised to remain stable.

The 69 mm category is currently estimated to contribute the largest annual sales volume at 30-35 per cent while the 64 mm budget brand category contributes 25 per