ITC’s quarterly net grows marginally to Rs 2,652.8 crore

Diversified group ITC Ltd on Friday posted a marginal rise in stand-alone net profit at Rs 2,652.8 crore for the third quarter ended December as its cigarette business continued to be under pressure, coupled with a demand slowdown in FMCG segment. The Kolkata-based company, which had posted a net profit of Rs 2,635 crore during the same period of 2014-15, also said lack of trading opportunities in agri-commodities also impacted its performance.

Net sales in the period under review were up 3.43 per cent to Rs 9,102.7 crore as against Rs 8,800.2 crore of October-December of the previous fiscal, ITC said in a statement.

"The company's performance during the quarter remained subdued, reflecting severe pressure on legal cigarette industry volumes, lack of trading opportunities in agri-commodities and sluggish demand environment prevailing in the FMCG industry," ITC said in a statement.

Revenue from the total FMCG business, including cigarettes, increased 6.21 per cent to Rs 6,857.5 crore, from Rs 6,456.1 crore in the corresponding quarter of 2014-15. During the quarter, revenue from cigarettes increased 5.74 per cent to Rs 4,379.9 crore, from Rs 4,141.9 crore in the year-ago period. "The performance of the cigarettes business remained muted during the quarter due to taxation and regulatory headwinds facing the legal cigarette industry in India," the company said.

Similarly, revenue from the other FMCG segment was up 7.06 per cent to Rs 2,477.7 crore during October-December as against Rs 2,314.1 crore last fiscal. "Weak demand - particularly in rural markets - coupled with a price deflationary environment and supply chain disruption caused by heavy rainfall and floods in Chennai impacted revenue growth," said ITC.

ITC's other FMCG segment includes branded packaged foods business such as staples, snacks and meals, dairy and beverages and confectionery; apparel, education and stationary products, personal care products, safety matches and aggarbattis.