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Last Updated : Aug 02, 2019 07:28 PM IST | Source:

ITC Q1 meets estimates, profit jumps 12.6% to Rs 3,174 cr, Cigarette EBIT rises 8%

Profit increased to Rs 3,173.94 crore in quarter ended June 2019, from Rs 2,818.68 crore in year-ago period.

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FMCG major ITC August 2 reported 12.6 percent year-on-year (YoY) profit growth to Rs Rs 3,173.94 crore for the quarter ended June 2019. The growth driven by cigarette business growth and other income matched Street expectations.

The company had profit of Rs 2,818.68 crore in the year-ago period.

Sequentially though the net profit degrew 8.8 percent.


Revenue during the quarter grew 5.8 percent YoY to Rs 11,502.82 crore with cigarette business growing 6 percent YoY to Rs 5,433.4 crore. On a quarter-on-quarter (QoQ) basis, topline fell 5.8 percent and cigarette segment registered a 1 percent decline QoQ.

At the operating level, cigarette earnings before interest and tax (EBIT) rose 8.2 percent YoY to Rs 3,849.13 crore in Q1, but sequentially dipped 0.2 percent.

Overall earnings before interest, tax, depreciation and amortisation (EBITDA) in Q1 grew 8.7 percent to Rs 4,565.7 crore with margin expansion of 110 basis points (bps) YoY to 39.7 percent during the quarter.

A poll of analysts by CNBC-TV18 had estimated profit of Rs 3,158 crore on topline of Rs 11,577 crore and EBITDA at Rs 4,582 crore with margin at 39.6 percent for the quarter.

Company's other income shot up 53.6 percent to Rs 620.2 crore compared to corresponding period last fiscal.

FMCG (others) segment registered a 6.6 percent YoY decline in revenue at Rs 3,060 crore and its EBIT grew by 55.66 percent to Rs 78 crore compared to year-ago.

ITC said FMCG (others) EBITDA increased 41.4 percent to Rs 180.7 crore year-on-year in quarter ended June 2019.

Among other segments, hotels business grew by 15 percent YoY but its EBIT fell 21.4 percent while agri category registered a 14.6 percent year-on-year increase in revenue at Rs 3,611.2 crore with its EBIT growing 4.3 percent.

Paper and packaging segment showed a 12.66 percent YoY growth in topline at Rs 1,527.5 crore and at operating level, its EBIT rose 11.5 percent.

ITC shares closed at Rs 264.60, down Rs 3.00, or 1.12 percent ahead of earnings.

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First Published on Aug 2, 2019 07:28 pm

tags #ITC #Results

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