Mumbai, Nov. 2 -- Higher cigarette taxes took a toll on ITC Ltd's earnings in the September quarter, as falling volumes and shrinking margins outweighed the strong growth in its packaged foods business. Despite a pickup in demand for biscuits, snacks and packaged staples, the company's profit fell 17% from a year ago even as revenue jumped nearly 44%, underscoring the weight of its cigarette business.

Consolidated profits after tax before exceptional items were at Rs.4,249 crore, down 17% from Rs.5,121 crore a year ago, while consolidated revenue from operations jumped nearly 44% to Rs.30,578 crore, ITC announced after market hours on Monday.

Consolidated earnings before interest, taxes, depreciation and amortization (Ebitda) fell 15.7%...