The company's net sales for December quarter has remained flat to Rs 125.82 crore. The net profit of the company has decreased by 20% to Rs 17.36 crore.

The cigarette business remained flat on Q-o-Q basis while grew by 6% on Y-o-Y basis.

The leaf tobacco export has dipped by 15% for Q3. For the nine months, it has grown by 51%.

Cigarette volume for the nine months grew by 6%, which is in range with industry growth of 6% to 7%.

Increase in VAT in Andhra Pradesh and Chattisgarh in January will impact the entire cigarette industry.

Leaf tobacco constitutes 15% of the total sales.

The company is expecting sales of Rs 150 crore from leaf tobacco for FY10.

The management expects a 10% to 15% hike in excise duty in cigarette from the coming budget.

VAT for cigarette in Delhi and Maharashtra is 20%, in Andhra Pradesh is 14.5%, in Chattisgarh is 14%, in Uttar Pradesh it is 13.5%, Gujarat its 15%m in Assam and Kerala its 13.5%.

The tobacco leaf price has seen a jump of 50% compared to last year. As new crops are coming, the management expects a marginal hike in tobacco leaf price going forward.

The company has cash in hand of Rs 180 crore.

The company on an average has capex of Rs 25 crore every year.