Equity Alert: GTC down 3%; Q4 net hit by cigarette excise duty hike

[K.Karthik Raja]

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Equity Alert: GTC down 3%; Q4 net hit by cigarette excise duty hike
MUMBAI--2:10PM--Shares of cigarette-maker GTC Industries were down
3% at
228.50 rupees after the company reported a 68% year-on-year fall in
Jan-Mar
profit before tax at 29.45 mln rupees.
Net sales fell 33.2% to 385.25 mln rupees.
The company reported a net profit of 21.50 mln rupees. However,
this is not
comparable year-on-year as it had booked a write-back of tax
provisions in
the corresponding period a year ago which had boosted net profit to
400.43
mln rupees then.
"GTC's fourth quarter earnings are impacted by one month of lack
of sales
after it hiked prices of non-filter cigarettes following the excise
duty hike
(announced in the budget for 2008-09)," said an analyst tracking the
industry.
Fundamental outlook on the company is bearish. Non-filter
cigarettes
account for 80% of the company's sales.
It sells prominent brands such as Panama, Gold Flake and
Chancellor.
Technically, the stock looks neutral, with resistance at 244
rupees and
support at 224 rupees, said an analyst at Religare Securities.
So far, 118,496 shares of GTC have been traded on NSE today.