India, May 21 -- FMCG major ITC reported a decline in its quarterly profit as increased taxation on cigarettes continued to put pressure on the company's margins.

The cigarette business remains one of ITC's largest revenue contributors, and recent tax changes have added challenges to profitability despite growth in other business segments.

According to reports, ITC posted a sharp year-on-year decline in net profit for the March quarter, although analysts noted that last year's numbers had been significantly boosted by a one-time gain linked to the demerger of the company's hotel business.

Excluding such factors, the company's operational performance remained under pressure due to higher taxation and cost concerns.

The recent increase ...