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ITC profit up 15.6% in the first quarter
The Hindu Business Line - 30 Jul 2014

Cigarettes-to-hotel company ITC Ltd on Tuesday  reported a 15.6 per cent rise in net profit at Rs. 2,186 crore for the first  quarter ended June 30.

It had reported a net profit of Rs. 1,891 crore  in the corresponding quarter last fiscal.

Rs. 7,339 crore in the year-ago period. Tax  expense saw a substantial jump of 24 per cent to Rs. 1,079 crore (Rs. 871  crore).

Segment results

The fast-moving consumer goods (FMCG) segment was the highest contributor, with  cigarettes alone accounting for nearly 46 per cent towards net sales.

Revenue from cigarettes stood at Rs. 4,201 crore,  an increase of around 19 per cent (Rs. 3,537 crore) during the  period.

Agri-business was the second highest contributor  towards revenue, accounting for 36 per cent, or Rs 3,296 crore of the net  sales. The paperboards, paper and packaging segment witnessed an 11 per cent  increase to Rs. 1,288 crore.

FMCG businesses under the “others category” that  include branded packaged foods, snacks, staples, stationery, personal care  products, safety matches and agarbattis and confectionary and bakery items also  witnessed a near 11 per cent growth to Rs. 1,935 crore.

Hospitality sector

However, revenue in the hospitality sector saw a marginal dip of Rs. 1 crore  (or 0.40 per cent) to Rs. 248 crore for the first quarter of FY-14. “The  hospitality sector continued to be adversely impacted by the weak economic  conditions and high levels of room inventory leading to a relatively weak  pricing,” ITC said in a release.

The hotel business suffered a loss of Rs. 12  crore for the first quarter. The loss was due to a Rs. 14.3-crore additional  depreciation charge. ITC is also going ahead with the expansion of its projects  such as the ITC Grand Bharat at Manesar near Gurgaon and other properties in  Hyderabad and Kolkata.

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