Press Reports

ITC Ltd on Friday reported a 16.83% growth in its net profit to Rs 652.28 crore for the first quarter ended June 30, 2006, compared to Rs 558.30 crore in the corresponding period last year. The rise in net profit follows a 25.71% increase in ITC's net sales revenues to Rs 2,849.75 crore (Rs 2,266.88 crore) in the April-June quarter. The tobacco-to-hotels and FMCG company has attributed the rise in its quarterly net sales revenues to 'continued ramping up of the foods business, higher agri business revenues and improved performance of the hotels business.' Net turnover, at Rs 2,850 crore, grew 25.71%. This was mainly driven by the non-cigarette business, which grew 44% during the quarter and now accounts for 50.2% of the company's net turnover, the company said in a statement issued after its board meeting in Kolkata on Friday.

Gross income during the quarter under review stood at Rs 4719.06 crore. This was up 19.15% over Rs 3960.57 crore in the earlier corresponding period. During the period under review, ITC's quarterly interest component declined by 33.33% to Rs 72 lakh (Rs 1.08 crore), while depreciation rose to Rs 87.64 crore (Rs 80.06 crore). Profit before tax and exceptional items registered a 16.5% growth to Rs 967.15 crore in the first quarter from Rs 830.14 crore in the earlier corresponding period. Earnings per share for the quarter stood at Rs 1.74.

Revenues from ITC's hotels business registered a 35.33% growth to Rs 198.77 crore (Rs 146.87 crore). This rise was primarily due to improved room realisations and occupancies across properties. A comprehensive renovation and product upgrade exercise to maintain the contemporary look of its properties is also underway.

WHILE revenues from the company's agri business was up 47.37% to Rs 1,111.09 crore (Rs 753.93 crore), revenues from paperboards, paper & packaging grew 8.8% to Rs 501.48 crore (Rs 460.74 crore). Though revenues from branded garments, greetings, gifting & stationery products, packaged foods, agarbattis and matches - categorised as 'FMCG: others' in the company's profit & loss account - rose 79.55% to Rs 359.68 crore during the April-June quarter, the segment incurred a loss before tax of Rs 58.18 crore (Rs 54.66 crore). In the packaged foods segment, the quarter saw an expansion of the confectionery products portfolio with the launch of Mango Natkhat in the hard boiled candy segment in June 2006 and a range of Aashirvaad Instant Mixes. Apart from tying up additional outsourced manufacturing capacity, this business is establishing its own production facilities across the country, including in tax exempt zones.

The company's lifestyle business continued to pursue opportunities in the exports arena, establishing long-term partnerships with high potential customers. It is also enhancing manufacturing capacities to take full advantage of the emerging growth opportunities.

Particulars	Q1 '06-07	Q1 '05-06	FY '05-06
Gross Income	4,719.00	3,900.57	10,510.51
Net Income	2,934.69	2,351.40	10,076.61
Total Exp.	1,879.18	1,440.12	6,463.15
PBT & Exceptional Items	967.15	830.14	3,269.19
Provision for Taxation	314.87	271.84	988.82
Exceptional Items (Net of Tax)	-	-	(45.02)
PAT	652.28	558.30	2,235.35
(Rs. cr)