ITC Ltd on Friday reported a 21.5 % year-on-year rise in net profit to ^2,231 crore during the July-September quarter compared to Rs. 1,836 crore a year ago, mainly due to a strong performance in its fast-moving consumer goods (FMCG) business.
Sales increased 8.8 % to Rs. 7,776 crore during the quarter against Rs. 7,146 crore in the corresponding quarter of the previous fiscal.
The company’s FMCG business grew 12% to Rs. 5,686 crore during the second quarter from Rs. 5,076 crore a year ago.
The company’s non-FMCG business however fell 3.1% to Rs. 3198 crores.
ITC’s total expenses during the quarter stood at 34,908 crore, an increase of 3.8%, compared with Rs. 34,726 crore in the year-ago period.
Its hotels business continued to be hit by the weak macroeconomic environment and a spurt in room additions in key markets. “Agri business recorded an underlying growth of 8.5% in segment revenue with significant improvement in profitability. In the paperboards, paper and packaging segment, the revenue was up 11.7% driven by paperboards and flexible packaging.
Sharp escalation in input costs (particularly of wood) impacted profitability,” the company said in a statement.
The ITC scrip closed at 3340, down 0.7%, on the Bombay Stock Exchange.