ITC Ltd reported a 15.6% rise in its net profit to Rs 3,120 crore on net sales of Rs 13,947.53 crore for the fiscal 2007-08. Net sales grew by 14.7%, according to a release issued by the company here on Friday. The company’s profit before tax increased by 16.4% to Rs 4571.77 crore and earning per share (basic) for the fiscal stood at Rs 8.29.
ITC’s profit after tax for the fourth quarter of the 2007-08 fiscal grew 14.1% to touch Rs 735.64 crore on net sales of Rs 3934.39 crore, which increased by 16.7% over the previous year, but that came after adjusting income tax refunds.
The board of directors recommended a dividend of Rs 3.50 per ordinary share of Re 1 each as against the previous year’s Rs 3.10 per share. It implies a cash outflow of Rs 1543 crore, comprising propsed dividend of Rs 1319 crore and income tax of Rs 224 crore on the proposed dividend.
According to the company release, ITC’s growth in the turnover and net profit was driven by a 49% increase in non-cigarette FMCG business and healthy performances of the hotels, paperboards and paper packaging segments. While the branded packaged foods business continued to expand rapidly with sales growing by 57% over the previous year, the lifestyle retailing business continued to enjoy a high brand salience with domestic sales going up by 26% and exports by 17% over the previous year.
ITC’s stationery business recorded a robust sales growth of 72% over the previous year, positioning the company as the largest marketer of notebooks in India with its two flagship brands–Classmate and Paperkraft. The brand portfolio of ITC combined with that of Wimco continues to enjoy a strong consumer franchise. The new value added offers, such as Aim Mega and Aim Metro, are steadily gaining market share delivering a topline growth of 8%.
