ITC Ltd on Friday reported a 2% rise in net profit, post- tax and after provisioning for “exceptional items” to Rs 2235.35 crore for the year ended March 31, 2006 compared to Rs 2191.40 crore in the previous year.

Post-tax profit before exceptional items in the year ended March 31, 2006 was Rs 2280.37 crore, which was 24.11% more than Rs 1837.07 crore the previous year.

This was stated by ITC in a statement issued after its board meeting held here on Friday.

The modest rise in net profit comes despite a 21.53% growth in gross sales revenue at Rs 16510.51 crore (Rs 13585.39 crore). Net revenue was up 27.94% to Rs 10076.61 crore (Rs 7875.26 crore).

The ITC board has recommended a dividend of Rs 2.65 per ordinary share of Re 1 each for the year entailing a cash outflow of Rs 1134.69 crore.

While cigarette sales grew 13.3%, non-cigarette businesses grew 46.2%, primarily due to the strong performance of the hotels and paperboards segments, ramp-up of the new FMCG businesses and growth in agri-business.

Over the past six years, net turnover of non-cigarette businesses has grown at a CAGR of 30% to Rs 4707 crore in 2005-06. Consequently, share in net sales has increased from 25% in 1999-00 to 48% in 2005-06.

Study shows revenue from hotels business grew 35.7%

DESPITE accounting for revenue charge towards product development and brand building costs of new FMCG businesses, PBDIT of non-cigarette businesses grew at a CAGR of 30% to Rs 821 crore in 2005-06. A study of the segment results indicates revenue from the hotels business grew 35.7% to Rs 783.35 crore. Profit before interest and tax (PBIT) was up 83.12% stood at Rs 258.09 crore (Rs 140.94 crore). The company’s second property at Parel in Mumbai — ITC Grand Central — added to the bottomline during its first full of year of operations.

Enhanced capacity utilisation at the Kovai facility and addition of paper machine taking the capacity to 75,000 tonnes per annum (tpa) at Bhadrachalam mill improved the company’s overall sales by 21%.

While revenue grew 21.10 % to Rs 1895.73 crore, PBIT was up 25.51% to Rs 351.42 crore during the year. Gross sales of ITC’s cigarette business stood at Rs 11329.74 crore, driven by domestic volume growth of 8.3% and export volume growth of 21% during the year under review.

Company officials attributed the cigarettes business performance to its strategy of value addition through initiatives like national rollout of the wave pack format, introduction of hinge-lid packaging in the plain segment and design enhancement of leading brands based on stateof-the-art technology.

Overall agri business revenues during the year grew 51% driven by wheat, rice exports and leaf tobacco. However, the segment results were impacted due to incremental costs associated with scaling up of the choupal network, income from export incentives included last year and lower margins in leaf tobacco exports consequent to change in sales mix during the period.

The company’s branded packaged foods business is establishing its own production facilities across the country, including tax exempt zones, with a view to servicing proximal markets in a cost-effective manner.