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ITC Q3 net rises 16% at 2,385 cr
The Times of India - 18 Jan 2014

Tobacco-to-FMCGto-hotel major ITC Ltd has maintained a healthy bottomline in a  “challenging environment” with a 16.3% growth in net profit in the third  quarter. It has posted a net profit of Rs 2,385 crore from Rs 2,051 crore last  year largely because of strong performance of agri, paper-board, hotel and new  FMCG business. The new FMCG business turned profitable for the second time  since the fourth quarter of the last fiscal. It has posted a profit of Rs 10  crore from a loss of Rs 24 crore quarter on quarter.
 
“The new FMCG business turned profitable backed by scale, margins and  premiumization. Hotels and agri business record robust growth while the  paperboard business was back into growth trajectory,” a senior ITC official  said. The company has pointed out that this performance is particularly  commendable when viewed against the backdrop of the highly challenging business  context in which it was achieved, namely, the significant deceleration in  consumption expenditure, sustained high inflationary conditions and the steep  increase in taxes/duties on Cigarettes. The gross revenue for the quarter grew  by 12.9% to Rs 12,223.44 crore.

Earnings per share for the quarter stood at Rs 3.01. The new FMCG businesses of  ITC recorded a growth of 16.4% in revenue despite a marked slowdown in  consumption expenditure. According to officials, the branded packaged foods  businesses of the new FMCG segment posted robust growth in revenues and  enhanced market standing across categories by leveraging a portfolio of  differentiated and innovative products. 

On the hotels segment, ITC said the profit grew by 12.1% during the quarter  aided by improved financial performance by ITC Grand Chola.