Cigarettes-to-hotel company ITC Ltd on Tuesday reported a 15.6 per cent rise in net profit at Rs. 2,186 crore for the first quarter ended June 30.
It had reported a net profit of Rs. 1,891 crore in the corresponding quarter last fiscal.
Rs. 7,339 crore in the year-ago period. Tax expense saw a substantial jump of 24 per cent to Rs. 1,079 crore (Rs. 871 crore).
The fast-moving consumer goods (FMCG) segment was the highest contributor, with cigarettes alone accounting for nearly 46 per cent towards net sales.
Revenue from cigarettes stood at Rs. 4,201 crore, an increase of around 19 per cent (Rs. 3,537 crore) during the period.
Agri-business was the second highest contributor towards revenue, accounting for 36 per cent, or Rs 3,296 crore of the net sales. The paperboards, paper and packaging segment witnessed an 11 per cent increase to Rs. 1,288 crore.
FMCG businesses under the “others category” that include branded packaged foods, snacks, staples, stationery, personal care products, safety matches and agarbattis and confectionary and bakery items also witnessed a near 11 per cent growth to Rs. 1,935 crore.
However, revenue in the hospitality sector saw a marginal dip of Rs. 1 crore (or 0.40 per cent) to Rs. 248 crore for the first quarter of FY-14. “The hospitality sector continued to be adversely impacted by the weak economic conditions and high levels of room inventory leading to a relatively weak pricing,” ITC said in a release.
The hotel business suffered a loss of Rs. 12 crore for the first quarter. The loss was due to a Rs. 14.3-crore additional depreciation charge. ITC is also going ahead with the expansion of its projects such as the ITC Grand Bharat at Manesar near Gurgaon and other properties in Hyderabad and Kolkata.