Godfrey Phillips India reported a 44% decline in first-quarter profit as higher excise duties introduced in January pressured margins. Consolidated net profit fell to 1.98 billion rupees ($19.8 million) from 3.56 billion rupees ($35.6 million) a year earlier.
The company, which manufactures and sells Marlboro cigarettes in India under license from Philip Morris International, said cigarette, tobacco and related product revenue more than doubled to 37.8 billion rupees ($378 million). However, excise duty expenses surged nearly eightfold to 26 billion rupees ($2.6 billion) after India introduced higher cigarette taxes ranging from 2,050 to 8,500 rupees ($205 to $850) per 1,000 cigarettes in February.
