1. ITC profit up 10% to Rs 2,385 cr; cigarettes biz logs 6.4% growth

ITC profit up 10% to Rs 2,385 cr; cigarettes biz logs 6.4% growth

Multi-business conglomerate ITC, which has presence in cigarettes, FMCG, hotels, paper boards and agri-produce on Thursday, missed analysts estimates on almost all the fronts, with a net profit growth of 10% at R2,384.7 crore in April-June quarter. Revenue on standalone basis increased 8.3% to R13,253 crore during the quarter.

By: | Updated: July 22, 2016 6:34 AM
ITC shares on Thursday closed down 0.06% at R250.65 on the BSE. However, the results were announced after market hours. (Reuters)

ITC shares on Thursday closed down 0.06% at R250.65 on the BSE. However, the results were announced after market hours. (Reuters)

Multi-business conglomerate ITC, which has presence in cigarettes, FMCG, hotels, paper boards and agri-produce on Thursday, missed analysts estimates on almost all the fronts, with a net profit growth of 10% at Rs 2,384.7 crore in April-June quarter. Revenue on standalone basis increased 8.3% to Rs 13,253 crore during the quarter.

Operating profit (Ebitda) grew by 8.4% to Rs 3,526 crore but margins remained unchanged at 26.6% on yearly basis. Other income during the period increased 18% to Rs 420.52 crore.

The company said that its cigarette business, which comes under FMCG business and contributes 62% to total revenue, registered a 6.4% growth in revenue at Rs 8,230.6 crore on yearly basis with the Ebit growing 8% and margin expansion of 50 basis points. FMCG (others) revenue, which includes dairy, personal care products, apparel and packaged foods, grew 9.5% to Rs 2,385.1 crore.

FMCG and agri businesses’ contribution to total revenue stood at 18% and 21% respectively. Agri business revenue increased 20.2% year-on-year to Rs 2,794 crore but Ebit margin contracted by 160 basis points to 8.5%.

Revenue from its hotels segment was almost flat at Rs 287.4 crore but Ebit turned positive at Rs 1.2 crore against loss of Rs 7.25 crore on yearly basis. Paperboards business fell 1.5% to Rs 1,323.9 crore with 20 basis points contraction in margin at 18.7% in Q1.

ITC shares on Thursday closed down 0.06% at Rs 250.65 on the BSE. However, the results were announced after market hours.

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