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.