ITC net profit up 16.8 per cent in Q3

Cigarette-to-FMCG major ITC Ltd has reported a 16.8 per cent increase in its net profit to Rs 3,090.20 crore in the quarter ended December 31, 2017 as compared to Rs 2,646.73 crore in the year-ago business quarter.

On a comparable basis, gross sales during the quarter stood at Rs 16,746.20 crore representing a growth of 6.3 per cent over Rs 15,746.93 crore in the corresponding period of 2016-17. Earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs 3,904.50 crore registered a growth of 10.1 per cent during the quarter. The Kolkata-based company said it delivered steady performance during the quarter despite a challenging operating environment marked by severe pressure on legal cigarette industry volumes and limited trading opportunities in agri-business. While the fast moving consumer goods (FMCG) industry witnessed progressive recovery during the quarter from the transitional impact of goods and services tax (GST) rollout, overall demand conditions remained subdued. Total comprehensive income (TCI), for the quarter, was at Rs 3,177.06 crore registering a growth of 27.8 per cent.

The cigarette maker also said that the legal cigarette industry volumes remained under severe pressure due to sharp increase in tax incidence and intense regulatory pressures. The sharp upward revision in GST Compensation Cess exacerbated the situation.