Cigarette maker Godfrey Phillips reports twofold jump in June quarter profit to Rs 118 crore

Cigarette maker Godfrey Phillips Saturday announced a twofold jump in its consolidated profit for June quarter at Rs 118.42 crore from Rs 57.31 crore in the year-ago period, the company said in a filing to BSE.

The company's consolidated income during April-June quarter increased to Rs 858.49 crore from Rs 612.56 crore in the year-ago quarter.

Shares of Godfrey Philips were trading 1.41% 0r 9.85 points higher at Rs 709.15, by the closing session on Friday.

The cigarette maker was in news earlier over allegations of violations regarding its arrangements for manufacturing Marlboro cigarettes. However, it rejected the accusations and said that is in complete compliance with India's FDI norms.

Godfrey Phillips has an exclusive procurement and supply agreement with Philip Morris International to manufacture and distribute Marlboro in the country.

As per media reports, Philip Morris for years has paid manufacturing costs to Godfrey Phillips to make its Marlboro cigarettes and circumventing the FDI norms.

"The suggestion of alleged violation of FDI laws of India is completely misconceived and misplaced," Godfrey Phillips India had earlier said in a regulatory filing.

The company was clarifying over various media reports suggesting an alleged violation of FDI norms in the arrangement to manufacture Marlboro cigarettes in India.

The company said it had entered into a commercial arrangement with IPM Wholesale Trading (an Indian entity and affiliate of Philip Morris International Inc, USA) to manufacture Marlboro cigarettes in India in May 2009, a year before May 2010 when the restrictions on FDI in the manufacture of cigarettes came into being.

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