Godfrey Phillips India Ltd’s shares went up by 2 per cent after the company announced its Q1 results. Revenue, EBITDA, and PAT recorded 26.2 per cent, 21 per cent, and 115.5 per cent growth, respectively. This performance was attributed to a focus on the cigarette business, expanded distribution of the Marlboro portfolio, leaf tobacco exports, and the improved performance of associate company PMI, leading to dividend income.
According to a report by Centrum Broking, a 120 per cent increase in tobacco leaf exports to Rs 310 crore and an 8.1 per cent growth in cigarette volume, drove a 28.7 per cent rise in tobacco revenues. Additionally, non-tobacco segments, including TFS (The Fruit Shop) and Funda Goli, reported 8.1 per cent growth.
Core markets, including J&K, Maharashtra, Gujarat, and Rajasthan supported the Marlboro franchise’s growth.
GP’s management expressed optimism in sustaining growth momentum, and the company’s long-term growth drivers, including new market focus, partnership reinforcement with Phillip Morris, strong export markets, and the growing TFS business, remain intact. The company expects to implement price increases across its portfolio in Q2 due to rising raw material and packaging prices. Steady dividend income from the associate company is also likely to contribute to GP’s future profitability.
The shares went up by 2 per cent to Rs 2,109 at 1:22 p.m. on BSE.