We believe that ITC would need to take ~5-6% increase in cigarette prices to pass on the duty hike to the consumers, without sacrificing the margin profile of the business. The previous price increase was taken a year back and hence we believe that ITC would not face any hassles to pass on the hike. We had already modelled in a 10% increase in excise duties and 2% volume growth for the cigarette business in FY17E...