ITC profit jumps 22% at Rs 1,070 cr

ITC, the cigarettes-to-hotels conglomerate, today reported a 21.8 per cent rise in post-tax profit at Rs 1,070.31 crore for the June quarter, compared to Rs 878.70 crore in the year-ago period.

Net turnover rose 16 per cent to Rs 4,817 crore, driven by the cigarettes, foods, personal care and agri businesses. Pre-tax profits increased 19.2 per cent to Rs 1,570 crore. Earnings per share during the first quarter stood at Rs 2.80. The company’s shares closed 1.59 per cent up at Rs 297 on the National Stock Exchange.

The non-cigarette fast moving consumer goods businesses showed improved profitability, said the company in a statement. Operating profits from the non-cigarette businesses grew 38 per cent. Cigarettes, however, continued to be the mainstay, accounting for 42 per cent of net revenues and 83 per cent of pre-tax profits.

The recovery in the hotels sector in the latter part of 2009-10 reflected in the company’s numbers for this segment, with revenues and profits growing by 21 and 26 per cent, respectively. Construction of new super luxury properties at Chennai and Kolkata were progressing.

“Several new projects, including joint ventures and management contracts, are also on the anvil to scale up the business across target market segments,” said the company statement.

ITC’s paperboards, paper and packaging business recorded a 13 per cent increase in revenues, while profits grew by 48 per cent, driven by a combination of product-mix, higher realisations and value capture through in-house pulp production.