After two quarters of cigarette margin decline, ITC's cigarette margins expanded 145 bps to 70.8% in Q1FY20 on the back of stable taxation regime and selective price hikes during the year. We believe the company's efforts to localise capsule filters (capsule filters are largely imported) and price hikes in the range of 14-16% in select portfolio (some Gold Flake varieties: 2.5% volume of cigarette portfolio) yielded results for this segment's margin expansion. FMCG EBIT improved from | 50.1 crore to | 78 crore (EBITDA increased from | 127.8 crore to | 180.7 crore) led by strong growth in...