ITC beats market expectations, reports 9 per cent profit in Q4

By: |
June 27, 2020 1:15 AM

During the fourth quarter last fiscal, revenue from the company’s cigarette business saw a de-growth of 6.5% y-o-y at Rs 5,130.53 crore, while non-cigarette FMCG business also registered 2.8% y-o-y fall in its revenue to Rs 3,183.55 crore.

The cigarette-to-FMCG-to-hotel major had posted Rs 3,481.90 crore net profit for the fourth quarter of FY19.

Beating market expectations, ITC on Friday reported a 9% year-on-year jump in its standalone net profit to Rs 3,797.08 crore for the fourth quarter ended March 31, on the back of lower tax expenses, although its gross revenue witnessed a fall of around 6% year-on-year.

The cigarette-to-FMCG-to-hotel major had posted Rs 3,481.90 crore net profit for the fourth quarter of FY19. Its gross revenue from sale for the period January-March this year decreased by 6.33% y-o-y at Rs 11,300.05 crore. The company’s tax expenses during the period under review fell 51.4% y-o-y at Rs 714.76 crore from Rs 1,472.01 crore from the year-ago period. ITC, in its stock exchange filing, said it had exercised the option permitted under Section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019.

Accordingly, the Deferred Tax Liabilities (net) as on March 31, 2019 and the estimate of tax expense for the year ended March 31, 2020 was “re-measured” in the quarter ended September 30, 2019. Consequently, tax expense for the quarter ended March 31 included a credit of `340 crore.

The company, in its stock exchange filing, said it has considered the possible effects that may arise out of the still unfolding Covid-19 pandemic on the carrying amounts of property, plant & equipment, intangible assets, investments, inventories, trade receivables, etc. “For this purpose, the company has considered internal and external sources of information up to the date of approval of the standalone financial results including credit reports and related information, economic forecasts, market value of certain investments etc. based on the current estimates, the company does not expect any significant impact on such carrying values. The impact of Covid-19 on the company’s financial statements may differ from that estimated as at the date of approval of standalone financial results,” it added.

During the fourth quarter last fiscal, revenue from the company’s cigarette business saw a de-growth of 6.5% y-o-y at Rs 5,130.53 crore, while non-cigarette FMCG business also registered 2.8% y-o-y fall in its revenue to Rs 3,183.55 crore.

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