ITC has posted a 17.67% rise in net profit to Rs 380.70 crore for the third quarter (October-December) of 2003-04, compared to the Rs 323.51 crore posted in the corresponding period of the previous year.

During the nine-month period ended December 31, 2003, the company’s net profit stood at Rs 1,205.79 crore, up 15.15% from the corresponding period of the previous year. The tobacco-to-FMCG major’s net income for the third quarter rose 10.8% to Rs 1,665 crore. It rose 6.7% to Rs 4,757 crore during the first nine months. The company announced the issue of about 65,356 ordinary shares of Rs 10 each under the ITC Employee Stock Option Scheme. The fresh equity accounted for just about 0.026% of ITC’s Rs 247.58-crore equity base. Segment-wise results showed that ITC’s agri-business had slipped into the red with a Rs 1.18- crore third quarter loss as against a Rs 8.72 crore profit in the same period last year. Its agri-business profit in the first nine-months also fell, by Rs 22 crore to Rs 66 crore compared to the same period last year.

According to the company, operating profits from the agri-business had been adversely impacted primarily on account of slower marketing of the Mysore leaf tobacco crop and the delayed export shipments of soya. ITC expects the loss to be set off in the last quarter. In the notes to the unaudited results announced on Friday, ITC reported a significant reduction in non-basmati rice exports during the nine-month period.

A transporters’ strike in April, 2003, and the appreciating rupee (against dollar) resulted in a comparative “de-growth” in this segment.

ITC exported Rs 72 crore worth non-basmati rice in April-December, 2003, as against Rs 456 crore in the previous period. ITC agri-business includes rice, soya, wheat, coffee and leaf tobacco.

The company’s non-tobacco FMCG business, which includes branded garments, packaged foods, greetings & gifts, managed to bring down its loss-to-revenue ratio in the third quarter. In this segment, losses amounted to Rs 37.59 crore on revenues of Rs 88 crore as against a loss of Rs 30.92 crore on revenue of Rs 37 crore in same period last year.

The nine-month segment-wise loss was Rs 113 crore as against Rs 78 crore in the corresponding period last year. However, ITC’s hotel business doubled profits in the third quarter to Rs 11.21 crore, while revenues grew 31% to Rs 71 crore compared to the same period last year. This was the result of improved occupancies and room realisations following the recent upturn in the industry.

ITC Sonar Bangla is on the verge of cash break-even in the very first year of operations. The construction of ITC’s second hotel in Mumbai – ITC Grand Central – was progressing satisfactorily, the release added.

In the third quarter, ITC acquired Bilt Industrial Packaging Company for Rs 233 crore payable over 5 years, adding 65,000 tonnes per annum of paperboard capacity.