Shares of ITC rose 4.58 percent to hit a new 52-week high of Rs 313.80 on the BSE, after the diversified consumer company posted a 12.13 percent year-on-year growth in standalone net profit to Rs 2,669.47 crore for the quarter ended March 31, from Rs 2,380.68 crore, with its biggest segment, cigarettes, witnessing a strong growth in sales. This result was better than a CNBC-TV18 estimate of Rs 2,653 crore.
Total revenues for the fourth fiscal quarter of FY17 increased 6 percent on-year basis to Rs 15,008.62 crore from Rs 14,138.78 crore. Total revenues were slightly lower than a CNBC-TV18 poll of Rs 15066 crore.
All the six major verticals of the company reported profit before tax, with cigarettes accounting for 81 percent of the total. ITC, India’s biggest cigarette maker, said that for the quarter ended March 31, revenue from cigarettes rose about 4.8 percent on-year basis to Rs 8,954.94 crore, compared to Rs 8545.46 crore. Profit before tax for the segment saw a 8 percent on-year rise to Rs. 3,259 crore from Rs 3,019 crore.
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The FMCG segment – which includes branded packaged foods such as staples, snacks, meals, dairy, beverages and confection; apparel; education and stationery; personal care products; safety matches and agarbattis – reported an on-year increase of over 6 percent in revenues to Rs. 2,886 crore from Rs 2,711 crore, and a 30 percent decline in profit before tax to Rs. 55 crore from Rs 79.
The company’s other businesses such as hotels (Rs 387 crore), agribusiness (Rs 1,918 crore), paperboards and packaging (Rs 1,372.73 crore) too reported growth for the quarter.
The board of directors also recommended a dividend of Rs 4.75 per ordinary share of Re 1 each for the Financial Year 2017, subject to declaration of the same by the members at the 106th Annual General Meeting of the Company convened for Friday, 28th July 2017. The declared dividend once approved will be paid on Monday, 31st July 2017.