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March 01, 2001 | Feedback |
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Sector Focus : CigarettesCigarettes: Post-Budget Cigarettes: State of the industry (2000) Cigarettes: Tariffs
1 Customs duties are in per cent. 2 Excise duties are in Rs per '000 cigarettes. Source: CRIS INFAC
Cigarettes: Budget impact Impact factors
Notes: Figures in brackets indicate the closing share prices, on February 27, 2001 and February 28, 2001, respectively. pos= positive neg= negative neut= neutral Source: CRIS INFAC A: The increase in the excise duty is expected to have a negative impact on the volumes and the operating margins of players, who are concentrated in the price elastic lower segments. However, companies, such as ITC and Godfrey Phillips would be able to pass on a major portion of the increase in the duty, since they operate largely in the price inelastic segments. B: The reduction of surcharge on corporate tax, from 13 per cent to 2 per cent and the expected decline in interest rates, is expected to have a positive impact on producers.
Rediff-CRISIL Budget Impact Analysis
Disclaimer: CRISIL has taken due care and caution in compiling this report. Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CRISIL is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of its web site. |