ITC net rises 23.5%

Cigarettes-to-hotels major ITC has reported a 23.5 per cent increase in profits after taxes in the second quarter to Rs 1,246.74 crore, compared to Rs 1,009.91 crore in the year-ago period.

The company’s net turnover rose 16.3 per cent during the quarter to Rs 5,061.20 crore, driven primarily by the cigarettes, branded packaged foods and agri businesses. Its profits before taxes increased by 22.7 per cent to Rs 1,830 crore. Earnings per share for the quarter stood at Rs 1.63.

Cigarettes continued to be the mainstay, accounting for 42.61 per cent of total revenues and 80 per cent of profits before taxes for the quarter. Operating profits from non-cigarette businesses grew 37 per cent to Rs 421 crore.

The ITC stock today appreciated 2.48 per cent to Rs 171.20 on the NSE. FMCG (others), which includes branded packaged foods, education and stationery, personal care, lifestyle and retailing, has cut loss before tax from Rs 85.02 crore to Rs 66.90 crore.

“Non-cigarette FMCG revenues were up 22.2 per cent with improved profitability especially in the branded packaged foods business,” the company said. The hotels segment’s profit before tax improved from Rs 31.56 crore to Rs 39.87 crore on a year-on-year basis.

“Recovery continues in the hotels segment with revenues and profits growing by 20 and 26 per cent, respectively,” the company said in a statement.

Paper and pulp segment revenues increased and profits were up by 17 per cent and 32 per cent, respectively.