ITC net profit up 11.9 pc in Q2
Cigarette-to-fmcg major ITC Ltd has reported a 11.9 percent increase in its net profit at Rs. 2,954.67 crore in the quarter, which ended on September 30 of the current fiscal as compared to Rs. 2,639.84 crore in the year-ago period. Its revenue operations, during the quarter under review, was at Rs. 11,272.51 crore, up by about 15.5 percent from Rs. 9,763.92 crore in the corresponding period last year. Gross revenue from sale of products and services for the quarter stood at Rs. 11,094.89 crore, representing a growth of 14.7 percent driven mainly by FMCG others (other than cigarette), agribusiness and hotels. Its revenue from the cigarette business, during the September quarter, stood at Rs 5,026.06 crore, up by 10.36 percent from Rs 4,554.21 crore in the same period last year.
Revenue from Fmcg-others, which include branded packaged foods businesses, apparel, education and stationery products, personal care products, safety matches and agarbattis, registered robust growth of 12.7 percent to Rs. 3,160.35 crore during the quarter as against Rs. 2,804.11 crore in the year-ago period. The company reported that the segment earnings before interest, tax, depreciation and amortization (ebitda) at Rs. 158.84 crore posted a growth of 77 percent on the back of enhanced scale, product mix enrichment and cost management initiatives, despite sustained investment in brand building, gestation costs of new categories and input cost pressures.
The FMCG major said its agri-business continues to step up initiatives in the area of value added agriculture to create new vectors of growth by leveraging its agricommodity sourcing and processing expertise and the strong distribution network of the company. During the quarter, ITC forayed into the frozen snacks category in the retail segment and the product range is currently available in Bengaluru, Chandigarh and Ludhiana. “Plans are afoot to rapidly scale up presence in the ensuing months,” the company said in a statement.