ITC, Lanco & Powergrid Q1 results

CORPORATE SCORECARD

ITC’s Q1 net dips for first time in 10 yrs

ITC, the country’s largest cigarette maker, recorded a 4 per cent decline in profit after tax at Rs 749 crore for the quarter ended June 30, 2008 as against Rs 782 crore in the corresponding quarter last year. The company did not have a single instance of a decline in quarterly profit over a decade, according to data available with Business Standard. Earnings per share fell by 9 paise to Rs 1.99. ITC’s net turnover grew by 18.4 per cent to Rs 3,900 crore driven by the non-cigarette businesses.

The company’s non-cigarette business grew by 29 per cent thanks to a rise in new FMCG businesses, higher agri business revenues and a healthy performance by its hotels and paperboards and packaging businesses. However, the unprecedented increase in excise duties on non-filter cigarettes in the Union budget 2008, increase in commodity prices and store rentals and continuing brand building costs in the foods business combined to exert intense pressure on profitability during the quarter, the company said.

 

Rising incomes and expansion of modern retail are boosting demand for everything from shampoo to biscuits, but higher prices of raw materials such as palm oil and wheat are hurting margins, while record-high inflation is crimping consumer spend, the company said.

Lanco Infratech net up 19%

Lanco Infratech, which is into power, real estate and construction, reported a 19.17 per cent increase in net profit for the first quarter ended June 30, 2008, at Rs 59.05 crore, as compared with Rs 49.55 crore in the comparable quarter a year ago. Total income grew by 59.15 per cent to Rs 926.78 crore, as against Rs 585.98 crore last year, triggered by a 250 per cent growth in revenues from construction and EPC contracts, which stood at Rs 518.2 crore during the quarter as against 147.9 crore in the corresponding quarter last year.

The company’s share of foreign exchange translation losses amounting to Rs 13.6 crore has been accounted for on notional basis without any impact on cash earnings, Lanco Infratech stated in a press release on Thursday.

Powergrid posts Rs 306 cr profit

Powergrid Corporation of India (PGCIL), the country’s largest power transmission company, posted a net profit of Rs 305.69 crore for the quarter ended June 30, 2008. Total income during the quarter was Rs 1,407.91 crore. The state-owned utility posted a total expenditure of Rs 226.48 crore in the quarter.

The company, however, did not disclose comparative figures from the corresponding quarter last year (2007-2008). Power Grid plans to spend Rs 8,000 crore during the current financial year ended in March 2009.