ITC Q2 net profit rises 23.5% at R 1,247 cr | india | Hindustan Times
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ITC Q2 net profit rises 23.5% at R 1,247 cr

india Updated: Oct 29, 2010 20:57 IST
HT Correspondent

The diversified business conglomerate ITC reported a 23.5 % rise in its net profit, year-on-year at Rs 1,246.7 crore for the July-September quarter as compared to Rs 1,009.9 crore during the same period a year ago. The profit was led by a robust growth in all its business verticals.

Net revenue of the company stood at Rs 5,061.2 crore, up 16.3 % driven primarily by the packaged foods and its agri and cigarette businesses.

Revenues from cigarettes, during the quarter, stood at Rs 2,550.1 crore year-on-year, as compared to Rs 2,259 crore a year ago. Even as cigarettes continue to remain largest revenue grosser for the company, revenues from its other FMCG businesses rose 22% to R1,056 crore.

Under FMCG segment, ITC, apart from cigarettes, sells personal care products, garments, stationary and branded packaged foods such as staples, biscuits, confectionery.

ITC’s operating profits from non-cigarette businesses grew by 37% to R421 crore year-on-year, as compared to R307 crore during the same period last year.
“The quarter marked the company’s foray into the fast-growing instant noodles market in India with the launch of Sunfeast Yippee in two differentiated flavours,” the company said in a statement.

The company, expressed concern over discriminatory taxation policies for cigarettes. “The already high and punitive tax incidence on cigarettes in India was further exacerbated with a steep increase of 17% in excise duties in the Union Budget 2010, increases in VAT rates and new Entry Tax imposts by several States.

Consequently, industry volumes have come under severe pressure,” the company said in its statement.

The revenues from its hotel business grew by around 20% to R208.9 crore during quarter, its agri business recorded 21.5 per cent increase to R1,249.6 crore.