ITC Q2 profit grows 12 % to Rs 2,955 crore
New Delhi: Diversified group ITC Friday reported 11.92 per cent rise in standalone net profit at Rs 2,954.67 crore for the second quarter ended September 30, led by strong performance across segments like cigarettes FMCG, and agribusiness.
The company had posted a net profit of Rs 2,639.84 crore in July-September quarter of 2017-18, ITC said in a BSE filing. Total income during the reported quarter stood at Rs 11,776.63 crore as against Rs 10,258.13 crore in the year-ago period, it added.
"The company delivered a healthy performance during the quarter amid a challenging business environment and continuing pressure on the legal cigarette industry," said ITC in a statement.
Total expenses of the Kolkata-headquarter firm were at Rs 7,407.51 crore as against Rs 6,313.84 crore earlier. During the quarter, revenue from total FMCG business was up 11.25 per cent to Rs 8,186.41 crore as against Rs 7,358.32 crore in the year-ago period.
ITC's revenue from cigarettes was at Rs 5,026.06 crore, up 10.36 per cent, as against Rs 4,554.21 crore in the second quarter of 2017-18. "Despite an extremely challenging operating environment, the business consolidated its leadership position in the industry and continued to improve its standing in key competitive markets across the country," said ITC.
FMCG-Others segment was also up 12.70 per cent to Rs 3,160.35 crore in July-September 2018 as against Rs 2,804.11 crore in the year-ago period.
FMCG-Others segment of ITC consists of branded packaged foods as staples, snacks, meals, dairy and beverages, confections, apparel, education and stationery products, personal care products, safety matches and incense sticks.
ITC's hotel business was at Rs 362.55 crore during the quarter as compared to Rs 300.18 crore in the corresponding period last fiscal.
"This was driven by higher room rates, increase in occupancy, strong Food & Beverage sales and high operating leverage notwithstanding gestation costs of new properties," the company said. Similarly, revenue from agribusiness segment was also up 12.79 per cent to Rs 2,219.73 crore as against Rs 1,967.98 crore in July-September quarter of the previous fiscal. According to ITC, trading opportunities in oilseeds, pulses, wheat and spices drive agribusiness revenue growth.
Paperboards paper & packaging was at Rs 1,424.46 crore in the second quarter of 2018-19, up 8.78 per cent from Rs 1,309.41 crore in the year-ago period.
This was "driven by product mix enrichment, higher realisation, strategic investments in imported pulp substitution, process innovation leading to improved pulp yield and benefits of cost-competitive fibre chain," said ITC.