ITC’s net profit rose 10.5 per cent to Rs.2,500 crore for the second quarter ended September compared with the same period a year ago.
The company’s revenue increased by 7.8 per cent to Rs.13,491.4 crore. The company said it had delivered another quarter of steady performance despite challenging operating environment in cigarette business and subdued demand conditions in the FMCG segment. Business in hotels, paperboards, paper and packaging segment also remained subdued.
ITC scaled up its range of juices and also introduced gourmet coffee and boutique chocolates. Its hotel revenues remained flat at Rs.297.3 crore.
Analysts said that ITC’s results were in line with estimates. Expansion in cigarette margins were managed by calibrated price-hikes. “FMCG sales growth, at 13.3 per cent year-on-year, is strong after four quarters of single-digit growth led by new product launches and favourable base in noodles. GST remains a key monitorable for the cigarettes” according to an Edelweiss report released on October 26.
Loss in FMCG business dipped to Rs.3 crore from Rs.11.1 crore a year ago. The report noted that rest of the businesses was muted . It however maintained a positive outlook on the company.
