ITC Q2 net up marginally at Rs 2,431.25 cr

Diversified group ITC Ltd today posted a marginal rise in standalone net profit at Rs 2,431.25 crore for the quarter ended September 30 as its cigarette segment reeled under pressure amid sluggish demand environment of the FMCG industry and prolonged disruption in the instant noodles category.
The Kolkata-based company had posted net profit of Rs 2,425.16 crore during the same period of 2014-15 fiscal.
Net sales during the period under review declined 1.40 per cent to Rs 8,804.70 crore as against Rs 8,930.32 crore of the July-September quarter of the previous fiscal, ITC said in a statement.
"The company's performance during the quarter remained subdued reflecting the unprecedented pressure on legal cigarette industry volumes, lack of trading opportunities in agri-commodities and sluggish demand environment prevailing in the FMCG industry coupled with prolonged disruption in the instant noodles category due to regulatory challenges," ITC said in a statement.

Revenue from the total FMCG business including cigarettes increased by 3.44 per cent to Rs 6,668.80 crore, from Rs 6,446.87 crore in the corresponding quarter in 2013-14.
During the quarter, revenue from cigarettes increased by 1.56 per cent to Rs 4,317.18 crore, from Rs 4,250.86 crore in the corresponding quarter in 2014-15.

"The performance of the cigarettes business remained muted during the quarter due to taxation and regulatory headwinds facing the legal cigarette industry in India," said ITC.
It further added:" FMCG-Others Segment registers revenue growth of 7.1 per cent amidst a sluggish demand environment and prolonged disruption in the Instant Noodles category".

Revenue from ITC's hotel business grew by 0.87 per cent to Rs 290.04 crore, compared with Rs 261.59 crore in the same period last year.
However, ITC's agri business was down 10.44 per cent to Rs 1,843.74 crore, compared with Rs 2,058.67 crore in the same period last year.
Agri Business revenue was "impacted by the lack of export opportunities in wheat, coffee and soya".
While export of Indian wheat was adversely impacted by lower international prices and poor quality due to unseasonal rains, soya and coffee trading opportunities were constrained due to adverse price parity in view of higher crop output and sharp currency depreciation in competing origins, the company said.