ITC Q3 net up 15.8%

CORPORATE SCORECARD

ITC Ltd, the country's top tobacco company, today announced a 15.8 per cent rise in quarterly profit, helped by good growth in its hotels and paper businesses and a control on losses in the FMCG division.

The company registered a profit of Rs 831 crore in the third quarter ended December 31, 2007, on the back of an 11 per cent growth in net sales at Rs 3,458 crore.

The results beat market forecasts. However, ITC shares lost more than two per cent to close at Rs 212.60 in a weak Mumbai market on Friday.

ITC, 31.7-per cent owned by British American Tobacco Plc, also has interests in retail and information technology, and is expanding its portfolio of foods and personal care products for a bigger share of the fast-growing market.

FMCG revenues grew nearly 50 per cent to Rs 655 crore in the October-December quarter, from Rs 436 crore in the previous corresponding period, boosted by strong revenues from foods, lifestyle retailing and stationery.

The company's losses before taxes and one-time gains or charges were restricted to Rs 64 crore, against Rs 46 crore in the corresponding period last year.

Higher taxes led to slower cigarettes sales at Rs 1,693 crore and a segment profit of Rs 961 crore in the quarter, against net sales of Rs 1,520 crore and a segment profit of Rs 828 crore in the previous corresponding period.

Hotels' revenue rose to Rs 313 crore and a segment profit to Rs 137 crore in the December quarter, against revenue of Rs 281 crore and profit of Rs 118 crore in the previous corresponding quarter.

Paperboards and packaging revenues rose to Rs 603 crore and segment profit to Rs 118 crore against revenue of Rs 543 crore and profit of Rs 104 crore in the previous corresponding period.