Shares of Godfrey Phillips soared over 5 percent a day after the cigarette maker reported earnings for the quarter ended June 2024. The company registered a net profit of Rs 273 crore, excluding an exceptional item of Rs 44.6 crore (net of tax credit) related to an expected loss from the closure of its retail business.
The company recorded a consolidated gross sales value of Rs 3,186 crore, representing an increase of 22 percent compared to the corresponding period last year, Godfrey Phillips said in a regulatory filing. Its gross profit margin during the quarter under review came in at 16.9 percent.
Godfrey Phillips operates the convenience store chain 24Seven. Earlier, in April this year, the company decided to exit the loss-making business.
"The company has initiated necessary steps in accordance with the decision of the Board of Directors on 12th April, 2024 to exit for carrying out the business operations of its retail business division," said CEO Sharad Aggarwal.
Accordingly, the company has recognized estimated closure costs of the retail business as an exceptional item in the financial results for the current quarter, he added. The company delivered robust cigarette domestic volume growth in Q1FY25.
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The company’s topline is supported by unmanufactured tobacco export of Rs 300 crore in Q1 FY25 which continues to show an upward trend, according to the CEO.
"Plans are afoot to enter some new markets with some new offerings while we shall continue to focus on productivity and profitability," he said.
The board of directors approved the appointment of Charu Modi, Additional Director, as an executive director for a period of five years with effect from September 7, 2024, and fixation of remuneration payable to her.
Meanwhile, it has been reported that Samir Modi was ousted from the board of Godfrey Phillips India at a meeting on Wednesday as fellow directors didn't support his reappointment.
This took place amid a bitter family feud where he and his brother, Lalit Modi, are battling their mother, Bina Modi, over an inheritance potentially valued between Rs 11,000 crore and Rs 30,000 crore, reported ET citing sources.
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At 10:03 am, Godfrey Phillips shares were trading 5 percent higher at Rs 4,332.20 on the National Stock Exchange (NSE). So far this year, the stock has zoomed 107 percent, doubling investors' money.
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