Cigarette-hotel-to-FMCG major ITC on January 31 registered a massive 29.07 percent year-on-year growth in Q3FY20 profit, largely driven by lower tax cost, beating analyst expectations.
Standalone profit for the quarter stood at Rs 4,141.9 crore, increased from Rs 3,209.1 crore in corresponding period last fiscal as tax expenses fell 44.6 percent YoY due to cut in corporate tax rate by the government last year.
Revenue growth of 5.1 percent YoY at Rs 12,103 crore for the quarter was also ahead of analyst estimates.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 6.6 percent to Rs 4,612.6 crore and margin expanded by 60bps to 38.4 percent in the quarter ended December 2019 YoY, missing analyst expectations.
Profit was estimated at Rs 3,850 crore on revenue of Rs 11,950 crore and EBITDA was expected at Rs 4,650 crore with margin at 39 percent for the quarter, according to an average of estimates of analysts polled by CNBC-TV18.
Other income during the quarter grew by 17.5 percent YoY to Rs 983.62 crore, but there was an exceptional loss of Rs 132.11 crore in Q3 as the leaf tobacco stocks (including taxes) destroyed at a third party owned warehouse due to fire, for which insurance claim has been filed and is under process, company said in its BSE filing.
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Cigarette business, which contributed 44 percent to total revenue, increased 4.7 percent YoY to Rs 5,310.98 crore with EBIT rising 5.6 percent to Rs 3,755.97 crore, while revenue from FMCG others grew by 3.5 percent to Rs 3,312.32 crore with EBIT growing 40.4 percent to Rs 107.62 crore in Q3FY20 YoY.
Hotels segment registered a 22.23 percent YoY growth in revenue at Rs 552.31 crore with strong 44.5 percent growth in EBIT at Rs 87.33 crore.
Agri business grew by 8.84 percent to Rs 2,094.71 crore with EBIT rising 7.4 percent to Rs 213.44 crore, while paper revenue increased 0.83 percent to Rs 1,555.37 crore with EBIT rising 0.55 percent to Rs 333.96 crore.