18 Feb , 2025 By : Debdeep Gupta
Godfrey Phillips shares extended gains for the third consecutive session on February 18 on strong quarter results for the current fiscal. The company reported a robust 48.7 percent year-on-year (YoY) surge in net profit for the December quarter, reaching Rs 316 crore. Meanwhile, revenue from operations jumped 27.3 percent YoY to Rs 1,591 crore, driven by substantial growth in its core business of cigarettes, tobacco, and related products.
The shares of Godfrey Phillips India Ltd surged to an intraday high of Rs 7,687.70 per share on the NSE, rising 11.78 percent. The stock had opened a gap-down with a loss of 2.79 percent, however, soon shares rose paring all the losses. The shares of the company have been gaining for the last three trading sessions, delivering nearly 45 percent returns so far.
On the operational front, Godfrey Phillips’ EBITDA soared 57.6 percent to Rs 359 crore in Q3FY25, with EBITDA margins expanding sharply by 440 basis points YoY to 22.6 percent.
India’s cigarette industry has faced challenges in recent years due to higher taxes, stricter regulations, and a rise in illicit trade, especially in the premium segment, impacting legal manufacturers.
However, Mirae Asset Sharekhan expects stronger volume growth ahead, driven by government action against illegal cigarette sales and moderate price increases across product portfolios.
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