Reiterate BUY. Our TP is Rs 358, at 32x Dec-19E EPS. ITC posted an in-line quarter. Net revenues grew by 7.7% YoY at Rs 99.5bn, in-line with our expectation of 8.1%. EBITDA and APAT grew 10% and 6%. With higher indirect tax incidence post GST, cigarette revenues grew merely ~5%, impacted by ~4% volume contraction (vs est. 2%). Due to higher share <64mm cigarette, the price hike of 10-11% was not visible fully. Cigarette volume pressure was across cigarette sizes.