Reduced losses in its branded packaged foods and ready-to-wear garment businesses, along with strong sales in cigarettes boosted diversified business major ITC’s net profit by 21.5% year-on-year to Rs 1,514 crore in the second quarter ended September, from Rs 1,247 crore in the corresponding quarter last fiscal.
The net revenues (less excise duties and taxes) also rose by 17.5%, to Rs 6,085 crore from R5,176 crore. For the half year ended September, ITC’s net revenues were up by 19% at Rs 11,928 crore from R10,034 crore in the same period last year while net profit was up 23% at Rs 2,847 crore from Rs 2,317 crore.
The hotel division showed sluggish growth, witnessing a 0.4% year-on-year rise in its revenues at R234 crore for the quarter and the net profit rose only 2.4% to Rs 43 crore. The slowdown is attributed to the economic crisis in the US and Europe.