ITC Ltd today reported a 13 per cent rise in net sales at Rs 1737 crore and an identical rise in post-tax profit at Rs 485 crore for the second quarter (Q2) ended September 2004 against net sales of Rs 1,536 crore and net profit of Rs 427 crore in Q2 of the preceding fiscal. Earnings per share for Q2 was Rs 19.56 against Rs 17.29 for the corresponding quarter of the last fiscal, the company announced today.

For the first half (H1) of this fiscal, ITC reported a gross income of Rs 6582 crore (against Rs 5738 crore in H1 of the last fiscal) and net profit of Rs 947 crore (Rs 825 crore). EPS was at Rs 38.25 (Rs33.33 in H1 last year).

ITC said revenues rose on the back of growth in cigarette sales, a sharp rise in FMCG sales and improved performance of the hotels and paperboards/paper and packaging divisions.

Sales growth enabled ITC to ignore a rise in interest costs in H1 at Rs 22 crore from Rs 9 crore in H1 of last fiscal, and in depreciation charges at Rs 138 crore this year from Rs 119 crore. Taxation was mildly higher at Rs 414 crore (RS 403 crore).

ITC shareholders would meet in November 19 in a special meeting to consider amalgamation of ITC Hotels and Ansal Hotels with ITC from April 2004. ITC had on September 10, 2004, received a favourable judgement from the Supreme Court dismissing a claim of Rs 681 crore made by the excise authorities as part of a Rs 803 crore excise demand.

In another interesting development, ITC reported that sale of Rs 282 crore worth of 'legacy' assets that had come under its ownership following exit from financial services and edible oil businesses, had yielded cash flow of Rs 72 crore with secured inflow of Rs 156 crore in four equal annual tranches.

In terms of business segments, ITC reported H1 cigarette sales at Rs 5079 crore (against Rs 4575 crore in H1 of the last fiscal), other FMCG sales at Rs 237 crore (Rs 126 crore), income from hotels at Rs 131 crore (Rs 106 crore), agri-business revenues of Rs 862 crore (Rs 734 crore) and paper and paperboards division sales of Rs 762 crore (Rs 603 crore).

Profit before tax from cigarettes in H1 of this fiscal was at Rs 1166 crore (Rs 1058 crore), from hotels at Rs 17 crore (Rs 2 crore), agri-business at Rs 73 crore (Rs 67 crore) and paper and paperboards at Rs 149 crore (Rs 114 crore).

The other FMCG business group comprising garments, stationery and cards, food items, matches and agarbatttis, lost Rs 85 crore in H1 of this financial year against Rs 75 crore in H1 of the last year despite the sharp rise in revenues.