Multi-business conglomerate ITC, which has presence in cigarettes, FMCG, hotels, paper boards and agri-produce, on Wednesday beat estimates on the bottomline front with a 9.9% year-on-year jump in its net profit at Rs 2,933 crore during the January-March quarter. Net sales, however was below Bloomberg consensus estimates, at Rs 10,706 crore, down 28% y-o-y. Ebitda grew 6.9% to Rs 4,144 crore, also missing estimates, while the Ebitda margin stood at 39.1% compared to 38.4% during the same period a year ago.
Revenue from total FMCG business, including cigarettes, stood at Rs 7,988.27 crore against Rs 11,840.70 crore in the corresponding quarter of the last fiscal. During the quarter, revenue from cigarettes was at Rs 4,936.45 crore against Rs 8,954.94 crore in the same period last year. “FMCG-cigarettes performance reflects the severe pressure on legal cigarette industry volumes due to steep escalation of tax incidence under the GST regime even as illegal trade grows unabated,” the company said in a statement.
Revenue from FMCG-Others segment was at Rs 3,051.82 crore compared to Rs 2,885.76 crore in the year-ago period. “FMCG-others comparable revenue growth stood at 10% during the quarter on a relatively firm base driven by Bingo! snacks, Sunfeast biscuits, B Natural juices, Engage deos, Fiama & Vivel personal wash, Savlon handwash and Classmate notebooks,” the company said.
The revenue from hotel business was at Rs 408 crore against Rs 386.52 crore in the corresponding period last fiscal. “While there was an improvement in room rates, performance of the hotels business remained subdued during the year due to the overhang of excess room inventory in key cities,” the company said.
Agri business revenue stood at Rs 1,808.31 crore. It was at Rs 1,918.49 crore in the same period last fiscal. The company’s board also recommended a dividend of Rs 5.15 per ordinary share of Re 1 each for FY17 and FY18.