ITC expects consumption uptick on rains, rate cuts

March quarter profit jumps 289% on hotels demerger, up 0.77% without it

- Suneera Tandon

NEW DELHI: ITC Ltd on Thursday predicted India's consumption engines to keep firing as inflation cools, interest rates fall, and rain clouds gather, following a similar prognosis by industry leader Hindustan Unilever Ltd.

Consumption spending is expected to rise steadily as a good monsoon powers a continued rural recovery, the maker of Bingo chips and Gold Flake cigarettes said; alongside, lower inflation and the recent income tax cut are expected to boost disposable incomes in towns and cities. The company expects India's macro-economic variables to remain stable in the year ahead.