Moneycontrol
Last Updated : Jan 19, 2018 02:19 PM IST | Source: Moneycontrol.com

ITC displays strong show in Q3; profit rises 17% on tax reversal, margin expands 170 bps

Total revenues increased 5.7 percent on a YoY basis to Rs9772 crore for the quarter ended December compared to Rs9248 crore reported in the year-ago period.

The diversified conglomerate, ITC reported 17 percent year-on-year growth in net profit to Rs 3,090 crore was higher than CNBC-TV18 estimates of Rs 2,843 crore. It was driven by exceptional gains.

The company had reported a net profit of Rs 2,646.7 core in the corresponding quarter of last fiscal, the company said in a statement.

"Exceptional gains represent provisions for earlier years of Rs 412.90 crore (Rs 270 crore post tax), in respect of Tamil Nadu entry tax that have been written back during the current quarter, based on a favourable order of the Supreme Court," ITC said in its filing.

Revenue from operations increased 5.7 percent on a YoY basis to Rs 9,772 crore for the quarter ended December 2017 compared to Rs 9,248 crore reported in the year-ago period.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) growth of 10.1 percent year-on-year at Rs 3,904 crore for December quarter was ahead of estimates of Rs 3,900 crore.

ITC has reported operating profit margin expansion of 170 basis points at 40 percent for the December quarter was much higher than CNBC-TV18 poll of 38.7 percent.

FMCG & hotels businesses grew by 11.8 percent and 9.2 percent, respectively. However, agri business & paperboard segment saw a degrowth of 8.4 percent and 4.2 percent, respectively.

Segment wise cigarettes, hotels and paperboard EBIT (earnings before interest and tax) showed a good growth of 7.8 percent, 30 percent and 9 percent, respectively.

FMCG segment reported a profit of Rs 47 crore at EBIT level as against a loss of Rs 19.7 crore in year-ago while agri business EBIT declined 1.4 percent YoY.

Dolat Capital said numbers were broadly in line with estimates. Volume decline in the cigarette business was around 5 percent similar to the reported in previous quarter at 6 percent, it added.

At 13:42 hours IST, the stock price was quoting at Rs 272.90, up Rs 0.05, or 0.02 percent on the BSE.
First Published on Jan 19, 2018 01:08 pm

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