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Growth in new FMCG business drives ITC profit
The Hindu - 18 Jan 2014

Cigarettes to hotels  conglomerate ITC posted a 16.3 per cent growth in its net profit during the  third quarter ended December 31, 2013, which was marked by new FMCG business  turning profitable. Hotels and agri-business posted robust growth in revenue  even as paper boards business was put back on the growth  trajectory.

Net revenue grew by  13.1 per cent to touch Rs.8,623.1 crore while net profit at Rs.2,385.3 crore  reflected a 16.3 per cent increase.

In a statement, the  company said that its new FMCG businesses registered a revenue growth of 16.4  per cent with segment profits of Rs.10 crore during the quarter, against a  Rs.23.9 crore loss a year-ago and a Rs.12.7 crore loss in the second quarter.  Net revenues in this segment stood at Rs.2,077.8 crore.

Hotels business, which  had been stagnating in the present economic environment recorded, improved  profitability which the company said was aided by superior performance by ITC  Grand Chola.

Segment revenues  remained muted due to a weak pricing scenario, but segment results improved by  12.1 per cent.

Paperboards, paper and  packaging segment showed an 18.2 per cent jump in revenue which touched Rs.1,  257.4 crore during the quarter.