ITC Q2 net rises 12% at Rs 2,955 crore

Kolkata: Net profit of diversified conglomerate ITC Limited during the September quarter of the current fiscal increased 11.9 percent at Rs 2,954.67 crore.

Gross revenue for the quarter stood at Rs 11,094.89 crore, representing a growth of 14.7 percent, driven mainly by FMCG (non-cigarette), agri-business and hotels, the company said in a statement.

The company's profit before depreciation, interest and tax stood at Rs 4,205.97 crore, registering a rise of 11.8 percent over the same period last fiscal.

Revenue from the FMCG (non-cigarette) segment was up 12.7 percent, the statement said, adding that EBITDA (Earnings before interest, tax, depreciation and amortization) was up 77 percent driven by enhanced scale, product mix enrichment and cost management initiatives, notwithstanding increase in input costs.

EBITDA for the hotels segment increased 35 percent after absorbing gestation cost of new properties.

Paperboards, paper and packaging segment profit increased 13.4 percent driven by higher realisation, strategic investments in imported pulp substitution, process innovation leading to improved pulp yield and benefits of cost-competitive fibre chain.

Trading opportunities in oilseeds, pulses, wheat and spices drove agri-business revenue growth it said.

ITC said pressure on legal cigarette industry volumes, adverse quality and leaf cost escalation pertaining to Andhra Pradesh 2017 crop, and lower export incentives weighed on the segment results.

Shares of ITC closed at Rs 280.65 per scrip on BSE, down 2.30 percent from the previous close.