ITC Q2 net profit up 5.6% y-o-y at Rs 2,639.84 crore

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Kolkata | Published: October 28, 2017 5:35:04 AM

The company's profit before tax of Rs 3944.29 cr for the quarter registered a y-o-y growth of 3.1%

ITC, ITC Q2 net profit, ASEAN, ITC Maurya, ITC Maratha, china, FMCG business, Cigarette business, gst regime, free trade agreementAgri business revenues remained subdued on account of limited trade opportunities in agri commodities, while performance was under pressure for highway liquor ban and renovation work at ITC Maurya and ITC Maratha. (Reuters)

Diversified business conglomerate ITC on Friday reported a consolidated 5.6% year-on-year growth in its net profit to Rs 2639.84 crore for the quarter to September FY 18 on revenue of Rs 16,391 58 crore. The revenue for the quarter grew 3.9% y-o-y much on the lines of the market expectations. The company’s profit before tax of Rs 3944.29 crore for the quarter registered a y-o-y growth of 3.1%, while earning per share stood at Rs 2.17. The growth in profit and revenue was buoyed by the growth in non cigarette FMCG business, increase in agri business and strong performance in hotel business. Cigarette business of the company remained subdued this quarter for sharp increase in tax incidence under GST regime. Despite sluggish demand and disruption in trade channel due to GST the company’s segment revenue registered a y-o-y growth of 10% due to higher realisation.

Agri business revenues remained subdued on account of limited trade opportunities in agri commodities, while performance was under pressure for highway liquor ban and renovation work at ITC Maurya and ITC Maratha. Paperboards, paper and packaging segment revenue continued to be negatively impacted by subdued demand in FMCG and legal cigarette industry, zero duty imports under free trade agreement with ASEAN and cheap imports from China. According to ITC statement, consequent to the introduction of GST gross revenue from sale of products and services and excise duty for the quarter are not comparable with the previous quarter.

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