ITC Dips As Numbers Disappoint Market

Mumbai, May 23: | Updated: May 24 2002, 05:30am hrs
Share price of ITC Ltd spiralled down on Thursday, due to heavy selling by some funds concentrating on index heavyweights on the back of below-the-expectation earning numbers declared by the company on Wednesday.

On The Stock Exchange, Mumbai (BSE), the stock closed down 5.95 per cent at Rs 583.55 on volumes of 4,78,408 shares, as against its previous close of Rs 618.30. The stock opened at Rs 623, which also happened to be the days high and touched an intra-day low of Rs 571.

ITC posted a growth of around 18 per cent in its net profit to Rs 1,189.70 crore during 2001-02, as against Rs 1,106.26 crore last fiscal. Gross turnover of the company increased by around 13 per cent to Rs 9,840 crore.

Said an FMCG analyst: "The 18 per cent increase in ITCs net profit was below the expectations and that may also be one of the reason for the stock getting jittery."

The analyst also added that the current Indo-Pak war-like fears have further had a negative impact on the stock. ITC also has its business interests in the hospitality sector, which may post a negative growth due to the current tensions on the border. This will further lead to ITCs Q1 profits getting impacted.