ITC Q1 net up 20% at Rs 1,602 crore
Diversified business firm ITC Ltd on Thursday said its net profit rose 20.21 percent to Rs 1,602.14 crore during the first quarter ended June 30, 2012.
New Delhi: Diversified business firm ITC Ltd on Thursday posted 20.21 percent rise in net profit to Rs 1,602.14 crore for the first quarter ended June 30, 2012, on the back of robust sales across non-cigarette FMCG businesses.
It had posted a net profit of Rs 1,332.72 crore during the same period 2011-12, according to an ITC statement.
Net sales of the company rose to Rs 6,552.21 crore for the April-June quarter of 2012-13, as compared to Rs 5,767.47 crore during the same period of the last financial year.
In the FMCG segment, including cigarettes vertical, the company posted net revenues of Rs 4,777.29 crore during the quarter, compared to Rs 4,071.32 crore in the same period of 2011-12.
The non-cigarette FMCG business -- comprising branded packaged food, personal care, education and stationery -- posted net revenues of Rs 1,473.05 crore during the quarter, up 22.98 percent from same period of previous fiscal.
In the branded packaged foods category of the FMCG segment, the company said it enhanced market standing across categories and posted significant growth in revenues during the quarter.
"Sales of value-added and premium products grew at a faster pace based on an enriched portfolio mix. Improvement in profitability was further aided by smart commodity sourcing and several strategic cost management initiatives," ITC said.
The Kolkata-based firm said several initiatives were launched during the quarter across the cigarette portfolio in terms of pack modernisation and introduction of variants and limited edition packs under the Classic, Flake, Gold Flake Premium Filter brands.
"The business is also test marketing filter cigarettes of length not exceeding 65 mm. On the manufacturing front, investments continued to be made towards enhancement of quality, productivity and variety," it added.
The company posted revenues of Rs 3,304.24 crore in the cigarettes segment in the first quarter ended June 30, as compared to Rs 2,873.56 crore in the same period of 2011-12 fiscal.
The company said hotel industry continues to be impacted by the weak global and domestic economic environment and significant additions to room supply in key Indian cities.
"Consequently, segment revenue has remained at the same level as the corresponding quarter of the previous year," the company said.
The Hotel vertical reported net revenues of Rs 232.35 crore for the first quarter, compared to Rs 230.46 crore during the same period of previous fiscal.
The company said it has acquired land in Sri Lanka on a 99-year lease from the Government of Sri Lanka, for developing a 5-star luxury property.
In the Paperboards and Packaging business, the company posted net revenues of Rs 1,036.12 crore for the first quarter, as against Rs 959.57 crore during Q1 last fiscal.
The company said it is the process of investing in a paperboard machine at Bhadrachalam (Andhra Pradesh) and a new carton line at Haridwar which are expected to become operational by end FY'13.
During the quarter, the company's agri business posted revenues of Rs 1,691.42 crore, as compared to Rs 1,707.14 crore in the same period of 2011-12 fiscal.
"Segment Revenues were impacted during the quarter given the surplus leaf tobacco inventory and the prevailing adverse commodity price parities," the company said.
Shares of ITC Ltd were trading at Rs 252.90 on the BSE in the late afternoon trade, down 0.67 percent from its previous close.