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ITC net up 19.4% on growth in FMCG biz
The Financial Express - 18 May 2013

Net rises to Rs. 1,927 crore; non-cigarette FMCG sector attains break-even during the fourth quarter

ITC’s net profit for the quarter to March 2013 fiscal grew 19.4% year-on-year to Rs. 1,927 crore from Rs. 1,614.36 crore during the corresponding period the previous year.

The profit grew on the back of a growth in the non-cigarette FMCG sector, which attained break even during the fourth quarter. The company registered growth across all segments despite gestation costs to the new FMCG business and recent investment in the paperboards, paper and packaging and hotel businesses.

The company has installed new paper machines at Bhadrachalam in Andhra Pradesh.

The company’s net turnover during the fourth quarter in 2013 fiscal grew 19.2% y-o-y to Rs. 8,180.30 crore from R6,861.35 crore during the same period in 2012 fiscal.
For the entire year in 2013 fiscal, ITC’s consolidated net profit grew 21.6% y-o-y to Rs. 7,693.58 crore from Rs. 6,322.39 crore in 2012 fiscal. The company’s gross income in 2013 fiscal grew 19.48% y-o-y to Rs. 45,102.45 crore from Rs. 37,747.71 crore in 2012 fiscal.
The profits were a result of growth in all segments with revenue of the non- cigarette segment growing 26.4% y-o-y. Revenue from the agri business segment also grew 26.4% y-o-y driven by better realisation and higher volumes, while paper board revenue increased 9.1% y-o-y with product mix enrichment and higher volumes aiding it, a company statement said.

However, steep increase in wood, coal and chemical costs restrained revenue growth in the paper board segment, which would have otherwise fetched more profit, according to the company statement.
Revenues from cigarette grew 13.4% y-o-y in 2013 fiscal. The cigarette segment, the major contributor to ITC top line, registered a pretax profit of Rs. 10,684.18 crore with the profit growing 20.1% y-o-y. Gross sales of cigarette increased 17.5% y-o-y with a 2.5% growth in volume.

The hotel businesses top line grew 10% y-o-y, the company statement said.

However, ITC’s cash flows from operations aggregated Rs. 9,596 crore in 2013 fiscal against Rs. 8,334 crore in 2012 fiscal. The company’s compounded earning per share for the year stood at Rs. 9.45 compared with Rs. 7.93the previous year. The board on Friday declared a dividend R5.25 per share against a dividend of Rs. 4.50 per share the previous year. The dividend would cost the company Rs. 4,853.49 crore in 2013 fiscal against R4,089.04 crore in 2012 fiscal.