Weak cigarette volumes, margins in Q2 weigh on ITC, stock sheds 5.5%

Decision by the panel on tobacco tax remains the key trigger

The stock of ITC was the biggest loser among Sensex constituents shedding over 5.5 per cent in trade on Thursday. Weak cigarette volumes in the September quarter, pressure on margins in the consumer business and overhang on cigarette taxation is weighing on the stock sentiment.

With cigarettes accounting for just under 80 per cent of operating profits, the operational metrics in the business is a key trigger for the stock. Estimated volumes in Q2 were up 9 per cent though this was on a base of 12 per cent dip in the year ago period. The company indicated that exit