ITC Q4 net profit rises 5.67% to Rs 2,495 cr

Diversified group ITC Ltd today reported a 5.67 per cent increase in standalone net profit at Rs 2,495.20 crore for the fourth quarter ended March 31, amid sluggish demand environment.
The Kolkata-based company, which has announced plans to issue one bonus share for every two existing ordinary shares, had posted a net profit of Rs 2,361.18 crore during the corresponding January-March quarter a year ago.
Net sales were up 9.51 per cent at Rs 10,062.38 crore for the quarter under review as against Rs 9,188.25 crore in the previous fiscal, ITC said in a BSE filing.
There was "improvement in performance during the quarter driven by improved realisations, margin expansion, benign input costs and favourable base effect" the company said.

It, however, said revenue growth of non-cigarette FMCG segment was impacted due to persistently sluggish demand environment, price deflationary scenario and trade pipeline synchronisation in the notebooks category.
Growth in segment results driven by higher scale and gross margin expansion, it said.

Revenue from the total FMCG business including cigarettes increased 8.35 per cent to Rs 7,343.29 crore from Rs 6,777.21 crore in the corresponding quarter of 2014-15.
During the quarter, revenue from cigarettes increased 10.17 per cent to Rs 4,639.17 crore from Rs 4,210.70 crore in the year-ago period although it continued to be impacted by illegal trade.
Revenue from FMCG-Others segment was up 5.36 per cent to Rs 2,704.12 crore during January-March period as against Rs 2,566.51 crore last fiscal.

For FY16, ITC net profit on consolidated basis was up 2.57 per cent to Rs 9,911.61 crore as against Rs 9,663.17 crore in the previous fiscal.
Consolidated net sales were up 1.64 per cent to Rs 39,066.85 crore in 2015-16 as against Rs 38,433.31 crore in 2014-15.
In FY16, ITC consolidated revenue from cigarettes segment increased 5.17 per cent to Rs 18,685.98 crore from Rs 17,765.99 crore of FY 2014-15 although it continued to be impacted from illegal trade.
"FMCG-Cigarettes segment continues to be impacted by severe pressure on legal cigarette industry volumes even as illegal trade grows unabated," said ITC.

Yearly revenue from the non-cigarette FMCG segment in the fiscal was up 7.71 per cent to Rs 9,723.85 crore period as against Rs 9,027.23 crore of FY 2014-15 as ITC's most categories recorded improvement in market standing amidst sluggish demand and price deflationary environment.
In FY16, consolidated revenue from hotel business was up
8.18 per cent to Rs 1,358.92 crore compared with Rs 1,256.16 crore in the same period last year aided by healthy growth in occupancy and Food & Beverage revenue, it added.
ITC's revenue from agri business segment was down 11.02 per cent to Rs 7,456.88 crore in FY 2015-16 from Rs 8,380.47 crore in the last year impacted by lack of trading opportunities in wheat, coffee and soya due to higher crop output and steeper currency depreciation in competing origins.

Revenue from paperboards, paper and packaging business was up marginally 0.87 per cent at Rs 5,017.39 crore, compared with Rs 4,973.90 crore in the same period last year.
ITC further informed that its board has recommend a total dividend of Rs 8.50 per share including a special Dividend of Rs 2.00 per share for FY16.
It has also recommended for issuance of one bonus share for every two existing ordinary shares held by Members on record date.
"Board of Directors recommend to shareholders for their approval of total Dividend of Rs 8.50 per share including a special Dividend of Rs 2.00 per share for FY16 and issuance of one bonus share for every two existing ordinary shares held by Members on record date," said ITC in a statement.

Shares of ITC today settled at Rs 329.95 at BSE, up 1.55 per cent from the previous close.