ITC quarterly profit up 15.6 pct; sales jump on smaller smokes, consumer goods

Written by PTI | New Delhi | Updated: Jul 30 2014, 16:24pm hrs
ITC LtdNet sales of ITC Ltd during the quarter under review also increased 24.88 per cent. (Reuters)
Diversified conglomerate ITC Ltd today posted a 15.6 per cent rise in its net profit to Rs 2,186.39 crore for the first quarter ended June 30, 2014, on the back of robust sales in FMCG and agri-business categories.

ITC Ltd had registered a net profit of Rs 1,891.33 crore in the April-June quarter of 2013-14.

Net sales of the company during the quarter under review went up by 24.88 per cent to Rs 9,164.42 crore, compared to Rs 7,338.52 crore in the same period of the previous fiscal, ITC Ltd said in a statement.

Revenue of the Kolkata-headquartered firm from its cigarettes business climbed 18.76 per cent to Rs 4,201.06 crore during the June quarter as against Rs 3,537.39 crore in the same period last fiscal.

Earnings from FMCG segment other than cigarettes also increased 10.88 per cent to Rs 1,934.61 crore during the period as compared to Rs 1,744.66 crore in the year-ago quarter.

This segment includes branded packaged foods, apparel, education and stationery items, personal care products, safety matches and agarbattis.

Revenue from its agri-business - which includes commodities such as soya, spices, coffee and leaf tobacco - increased 50.57 per cent to Rs 3,296.06 crore during the first quarter of this fiscal. It stood at Rs 2,188.98 crore during the same period last fiscal.

However, revenue from the hotel segment fell marginally by 0.46 per cent to 248.69 crore during the quarter as against Rs 249.86 crore a year earlier.

"The hospitality sector continued to be adversely impacted by the weak economic conditions and high levels of room inventory in key Indian cities leading to a relatively weak pricing scenario. Consequently, growth in Segment Revenues remained muted during the quarter," the company said.

ITC's revenue from paperboards, paper and packaging segment during the period under review grew 10.77 per cent to Rs 1,288.48 crore, from Rs 1,163.14 crore a year ago.

ITC Q1 sales jump on demand for smaller smokes, consumer goods

(Reuters) ITC Ltd, India's largest cigarette maker, reported a better-than-expected 25 percent rise in quarterly sales as demand for smaller and cheaper cigarettes grew and its consumer goods business put in a stronger performance.

India's fourth-biggest company by market value said net sales rose to 91.6 billion rupees ($1.5 billion), up by a quarter from the year-earlier period and beating a consensus forecast of 85.1 billion rupees from Thomson Reuters Starmine.

Net profit fell marginally short of expectations, rising 16 percent to 21.9 billion rupees ($364 million) for the quarter ended June 30, compared with an estimate of 22.2 billion rupees.

ITC sells four out of every five cigarettes sold in India and is nearly 25 percent-owned by British American Tobacco .

ITC's consumer goods business, which includes packaged foods and personal care products, grew 11 percent.

Sharp hikes in excise duties of 11-72 percent announced for the Indian federal budget 2014/15 in June are likely to hurt sales volumes by an estimated 3.5 to 4 percent in the current fiscal year, analysts have said.

($1 = 60.1050 Indian Rupees)