Diversified conglomerate ITC Ltd on Friday reported a 12.69 per cent rise in its consolidated net profit at Rs 3,436.51 crore for the first quarter ended June 2019, driven mainly by FMCG and agri-business segments.
The company had posted a net profit of Rs 3,049.38 crore in the April-June quarter of the previous fiscal.
Net sales during the quarter under review stood at Rs 12,532.31 crore as against Rs 11,745.68 crore in the corresponding period a year ago, higher by 6.69 per cent, ITC said in a regulatory filing.
"The company posted a steady performance during the quarter amidst sluggish demand conditions. Gross revenue for the quarter stood at Rs 11,361.35 crore, representing a growth of 6 per cent, driven mainly by paperboards, hotels and FMCG-others (excluding the lifestyle retailing business)," said ITC.
Total expenses for the said period were at Rs 8,113.67 crore as compared with Rs 7,667.62 crore, up 5.81 per cent.
During the quarter, revenue from total FMCG business was up 6.76 per cent to Rs 9,209.99 crore as against Rs 8,626.61 crore in the year-ago period.
Total FMCG business comprises segments like cigarettes and FMCG-others.
Revenue from cigarettes stood at Rs 6,141.92 crore in the April-June quarter, up 6.83, as against Rs 5,748.86 crore in the corresponding period last fiscal.
While revenue from FMCG-others segment rose 6.61 per cent to Rs 3,068.07 crore as against Rs 2,877.75 crore.
"The FMCG-others segment delivered a resilient performance during the quarter amidst a marked slowdown in the FMCG industry across urban and rural markets, " said ITC.
FMCG-others segment of ITC consists of branded packaged foods as staples, snacks, meals, dairy and beverages, confections, apparel, education and stationery products, personal care products, safety matches and incense sticks.
ITC's hotel business was up 13.90 per cent to Rs 411.60 crore during the quarter as compared to Rs 361.35 crore in the corresponding period last fiscal.
"The business recorded a steady performance with segment revenue growing by 15 per cent during the quarter driven by the recently commissioned hotels," said ITC.
However, it also added "the performance of existing hotels was relatively subdued due to slowdown in the conferences and banqueting segment".
Revenue from agri-business segment moved up 14.58 per cent to Rs 3,622.40 crore as against Rs 3,161.39 crore in the June quarter of the previous fiscal.
In the agri-business segment, subdued demand for leaf tobacco in international markets, steeper depreciation in currencies of competing origins in recent years, limited trading opportunities in oilseeds and Pulses and adverse business mix weighed on segment results.
Paperboards, paper and packaging segment was at Rs 1,527.53 crore, up 12.66 per cent from Rs 1,355.83 crore earlier.
Although the segment continued to record growth driven by strong volume growth in the value added paperboard segment and product mix enrichment but "growth in the Packaging & Printing Business was impacted due to sluggish demand conditions in the FMCG industry and exports".
While revenue from others segment reported a 11.43 per cent growth at Rs 523.22 crore as against Rs 469.53 crore.
Shares of ITC Friday settled at Rs 264.60 apiece on the BSE, down 1.12 per cent from their previous close.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)