ITC registered a net profit of R1,281.48 crore for the fourth quarter, up 25% from R1,028 crore in the corresponding period last financial year, riding on hotels, FMCG and paper businesses. But its top line growth of 15% at R5,836.26 crore for the quarter was below estimates, according to analysts.

For the quarter, cigarettes contributed by registering a 13.2% growth in gross revenues, thanks to price hikes and improved product mix. For the year, cigarettes saw a 12.8% growth in net revenues while non-cigarette FMCG business grew by 23%.

Net turnover for the year was up 17% at R21,167.58 crore, driven by double-digit growth in agri business and hotels, among others.

For the year, net profit was pegged at R4,987.61 crore, up 23% from the corresponding period last financial year. According to a company release, cash generated from operations stood at R7,460 crore during the year, compared with R6,632 crore in the previous year.

Analysts at Angel Broking said earnings for the quarter grew by a robust 25% year-on-year to R1,282 crore, ?below our expectation of a 28.8% y-o-y growth to R1,325 crore, aided by high other income (up 52.2% y-o-y to R226 crore) and flattish margins (up 18 basis points y-o-y to 30.7%).? For the full year, analysts said the operating margins expanded by 33 basis points, aided by operational efficiency.

On the centenary year, the board had recommended a special dividend of R1.65 per share (previous year Special Centenary Dividend – adjusted for bonus issue – R2.75) in addition to a dividend of R2.80 per share (previous year – adjusted for bonus issue – R2.25) for the year ended March 31, 2011.

The company said the total cash outflow in this regard will be R4,002 crore (previous year R4,452 crore) including a dividend distribution tax of R559 crore (previous year R634 crore).

Talking about sectors, the company said hotels made a gradual recovery after two successive years of decline. The buoyancy, however, was muted on account of several reasons including the run up to the elections in a number of states, the release said.

Against this backdrop, the business witnessed robust growth of 18% and 23% in revenues and pre-tax profits respectively, reversing the declining trend.

The branded packaged foods business recorded a growth of 25%, riding on new product launches and increased levels of marketing and promotions. But input costs were a cause for concern.