Moneycontrol Bureau
ITC has posted net profit at Rs 2500 crore in July-September quarter up 10.5 percent from Rs 2262.5 crore in corresponding last fiscal. During the period, its total income registered an 8 percent growth at Rs 13616 crore compared to Rs 12611 crore on annual basis.
Surprisingly, its cigarette revenue grew 7 percent in Q2 at Rs 8528 crore against Rs 7963 crore year-on-year. In Q2, EBITDA grew 7.3 percent at Rs 3630 crore against Rs 3383 crore while margins were almost flat at 26.7 percent against 26.8 percent (YoY).
According to CNBC-TV18 poll, the cigarette-hotel-to-FMCG major was expected to report net profit at Rs 2673 crore with cigarette volume seen growing 3-4 percent in Q2.
"The company delivered another quarter of steady performance despite a challenging operating environment marked by continuing pressure on legal cigarette industry, increase in input cost and subdued demand conditions prevailing in the FMCG industry. Operating conditions in hotels, paperboards, paper and packaging segment also remained subdued," a press statement said.
Segment-wise growthDriven by scale and mix offsetting impact of significant increase in input cost, continuing investment in brand building and consumer/trade promotion activities, FMCG revenue recorded growth of 13.3 percent in Q2 despite weak demand conditions.Hotel segment growth was flattish due to mute operating conditions in the industry.
Its agri segment revenue grew by 2 percent in Q2 due to higher agri-commodity sales in the domestic market offset by lower supplie to the company's FMCG business. "Steeper currency depreciation in competing geographies and lower wheat crop output in India constrained growth in exports," ITC said.
Its paperboards, paper and packaging revenue remain impacted by muted demand environment in FMCG and legal cigarette industry.Posted by Nasrin Sultana
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