ITC posts 25% jump in PAT on sales - Business Standard
July 29, 2011
Cigarette to hotels major, ITC Ltd, beat market expectations in the first quarter posting a profit after tax of 25 per cent growth at Rs 1,332.7 crore, on the back of a sales surge across segments.
Net turnover at Rs 5,767 crore grew by 19.6 per cent, driven primarily by the branded packaged foods, agri, paperboards and packaging, apart from the cigarettes business. Gross income was at Rs 8458.8 crore, an increase of 17.7 per cent while pre-tax profits grew 23.4 per cent at Rs 1,937 crore.
The stock reflected the company's performance, as it closed at Rs 206.1 on the Bombay Stock Exchange 2.6 per cent above its previous close.
ITC's non-cigarette profits grew 36 per cent at Rs 360 crore, even though cigarettes dominated its pre-tax profits at more than 80 per cent. The non-cigarette fast moving consumer goods segment, which includes branded packaged foods and personal care, however, pared losses to Rs 76.3 crore from Rs 89.3 crore in the same period last year while revenues grew by 20 per cent.
The hotels business, which has been on a major investment drive, posted a topline of Rs 230 crore representing a growth of 10 per cent and profits of Rs 51 crore, an increase of 33 per cent. Revenues in the agri business were up by 26 per cent while results grew by 21 per cent.
