ITC's 1QFY17 operating performance was in line with estimates. Net revenues (Ind AS) increased 9.8% YoY (est. 10%) to INR 100.5b. EBITDA margin decline stood at 40bps over a very high base in 1QFY16 (vs. our estimate of 100bps decline) while PAT before other comprehensive income (Ind AS) grew 10.1% YoY (est. 10%) to INR 23.8b. Absolute Sales, EBITDA and PAT numbers differ from our estimates due to IND AS adjustments. We reckon cigarette volumes were up 3% YoY (best numbers since 4QFY13 and better than our expectation of 1% increase) aided by higher growth in the...