ITC net up 18%, sales spurt 10%

ITC Ltd today reported a 17.9 per cent rise in post-tax profit for the third quarter (Q3) ended December 31, 2004, at Rs 448.94 crore on the back of a 10 per cent rise in net sales for the quarter at Rs 1795 crore.

Pre-tax profit grew 12 per cent to Rs 638.70 crore and earnings per share rose to Rs 18.10. In the previous financial year, ITC had reported net sales of Rs 1,623 crore, profit before tax of Rs 566 crore and profit after tax of Rs 380 crore, with earnings per share at Rs 15.38.

For the first nine months of this financial year, ITC's net sales stood at Rs 5,308 crore, profit before tax at Rs 2,000 crore and profit after tax at Rs 1,396 crore, with earnings per share at Rs 56.35.

Cigarette sales in the quarter rose to Rs 2,419 crore from Rs 2,302 crore in the same period of 2003-04, while profit before tax inched up to Rs 560 crore in from Rs 510 crore.

Despite the implementation of laws restricting use of tobacco products, imposition of education cess on excise duties and rising state taxes, cigarette sales rose thanks to launches of brands and new pack designs.

Sales of non-cigarette FMCG products in the quarter rose to Rs 152 crore from Rs 88 crore in the same period last year, while segment losses were restricted to Rs 40 crore from Rs 37 crore in Q3 in the last financial year.

Branded packaged foods like its Sunfeast biscuit range gained volumes, and the imminent launch of more differentiated products and development of a outsourced and distributed manufacturing capacities would further push volumes in this category, said ITC in a release.

While its Aashirvaad flour brand did well, new ready-to-eat conserves and chutneys and extension of the marketing range for cooking pastes and ready meals pushed Q3 sales.