ITC posts 20% growth in net

India's biggest tobacco maker, ITC Ltd, posted a 20 per cent rise in its third-quarter net profit on Friday on strong sales of cigarettes and fast growth of its other consumer goods business, including packaged foods.

The company said its net profit rose to a record Rs 536 crore from Rs 449 crore reported a year earlier. Net sales too touched a new high of Rs 2,556 crore during the quarter, up from Rs 1859 crore in the same quarter of the previous financial year.

ITC shares rose nearly 3 per cent to close at Rs 147 in a firm market. Revenue from cigarettes rose 19 per cent to Rs 2,880 crore.

Lower state taxes and rise in cigarette prices are expected to offset the impact of a 10 per cent increase in excise duty on cigarettes last year.

The company took charge of Rs 45 crore on account of one-off assistance to contract manufacturers in view of the retrospective withdrawal of central excise exemption on cigarettes manufactured in the north-east states in 2000.

ITC also has interests in hotels, apparel, agri-products, rural retail and information technology.

It recently entered the personal care segment, where it would compete with leader Hindustan Lever Ltd and Procter & Gamble.

Better occupancies and higher-room tariffs bumped up revenues from hotels by 31 per cent to Rs 219 crore in the quarter.