ITCs overall revenues increased a mere 0.6% YoY to Rs 92.9bn (below est). Cigarettes reported net sales growth of 3.2% YoY (implied volume decline of ~10%). Key negatives are (1) Cigarettes delivered 6% YoY EBIT growth (vs 8.8% in 3QFY15) (2) Muted sales growth witnessed in Agri (28.8% YoY decline) and Paper (4.6% YoY decline) (3) Hotel business witnessed a significant margin contraction (-654bps YoY) (4) ITC?s EBITDA margin expansion of 22bps YoY (34.9%) was below expectation.