ITC net jumps 21.4% to Rs 1,389 crore

Cigarette-to-hotels major, ITC, has recorded a 21.4 per cent increase in post-tax profits to Rs 1,389 crore for the quarter ended December 31. Pre-tax profits for the quarter recorded a growth of 19.4 per cent over last year and crossed the Rs 2,000 crore-mark.

In the FMCG segment, cigarettes profits were at Rs 1,532.95 crore, while “others”, which include branded packaged foods, garments, education and stationery, and personal care products, posted a loss of Rs 73.60 crore.

“Segment results of FMCG others encompasses significant business development, brand building and gestation costs of branded packaged foods and personal care products businesses,” ITC said.

 

Net sales from the quarter stood at Rs 5,453.49 crore, an increase of 18.57 per cent over last year's corresponding quarter of Rs 4,599.56 crore.

The company has attributed its revenue growth to foods, agri and paperboards businesses. Revenues from the FMCG segment stood at Rs 3,874.7 crore, of which cigarette sales accounted for Rs 2,772.6 crore.

Non-cigarette FMCG revenues were up 24 per cent and the company said, improved profitability was led by the branded packaged foods business.

Recovery in the hotels segment continued with revenues increasing 15 per cent and profits 16 per cent to Rs 281.63 crore and Rs 88.60 crore, respectively.

Agri business revenues were up 17.85 per cent to Rs 1,066.74 crore and profits 35.55 per cent to Rs 141.08 crore.

The overall performance of ITC, though was impacted by packaging inventory depletion due to uncertainty around the change in graphic statutory warnings on cigarette packaging. Earnings per share for the quarter stood at Rs 1.81 compared to Rs 1.50 over the same period last year.

The ITC stock today closed at Rs 169 on the Bombay Stock Exchange, lower by 1.63 per cent.