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ITC net up 18.7% to Rs 680 crore
Economic Times - 31 Oct 2006

Continued Ramping Up of the Foods Business peps up Growth Chart

ITC Ltd on Monday reported a 18.74% growth in net profit at Rs 679.6 crore for the second-quarter ended September 30, 2006, compared to Rs 572.33 crore in the earlier corresponding period. The higher Q2 net profit follows a 32.26% rise in ITC’s July-September quarter net sales revenue at Rs 2887.64 crore (Rs 2183.15 crore).

The tobacco to hotels & FMCG company has attributed the rise in its quarterly net sales revenue to ‘continued ramping up of the foods business, higher agri business revenues and strong performance of the hotels business.’

Net turnover at Rs 2,888 crore grew by 32.26%, driven by the non-cigarette business, which grew by 53% during the quarter and now account for 51.2 % of the company’s net turnover, the company said in a statement issued after its board meeting held in Kolkata on Monday.

Gross income during the quarter under review at Rs 4704.36 crore was up by 23.27 % over Rs 3816.24 crore in the earlier corresponding period. During the period under review, ITC’s quarterly interest component was Rs 3.48 crore, while depreciation rose marginally to Rs 90.97 crore. Profit before tax and exceptional items registered a 17.48 % growth to Rs 957.76 crore in Q2 from Rs 815.24 crore in the earlier corresponding period. Earnings per share for the quarter stood at Rs 1.81, the company release stated.

Revenue from ITC Ltd’s hotels business in the quarter under review registered a 30.51% growth at Rs 200.96 crore (Rs 153.97 crore) on the back of a 37% growth in overall revenue per available room. A comprehensive renovation and product upgradation exercise at various hotels to maintain the contemporariness of its properties is also underway.