Godfrey Phillips India reported a 37.7% decline in net profit for the July-September quarter, falling to ₹1.9 billion ($20.1 million) from ₹3.05 billion ($32.3 million) a year earlier, as higher cigarette taxes continued to pressure profitability. Quarterly expenses nearly tripled to ₹40.3 billion ($426.4 million), driven by increased excise duties and higher raw material costs. Revenue from operations rose to ₹42 billion ($444.4 million) from ₹16.23 billion ($171.7 million), reflecting price increases implemented following the tax hikes announced in January. The company, which manufactures and markets Marlboro cigarettes in India under license from Philip Morris International, said higher taxes have also contributed to illicit cigarette trade.
