ITC Q2 net jumps 21.3% to 1836.42cr - The Times of India
October 20, 2012
Hotels-to-FMCG major ITC Ltd’s net profit went up 21.3% for the second quarter (July-September) of the current fiscal (2012-13). The net profit for the quarter was at Rs 1,836.42 crore this fiscal compared to Rs 1,514.31 crore posted during the year ago period. The new FMCG business continued to reduce its losses. This year, it has posted a loss of Rs 30.31 crore for the second quarter compared to Rs 55.90 crore it posted during the corresponding quarter last fiscal.
The net revenue of the company for the quarter jumped by 19.6%. In the second quarter of this fiscal, it posted Rs 7,226.58 crore from Rs 6,090.57 crore during the year-ago period.
"The branded packaged foods business recorded a significant growth during the quarter across all major categories. An enriched sales mix combined with smart commodity sourcing and supply chain optimization helped enhance profitability," a company statement said.
The education and stationery products business continues to strengthen the Paperkraft brand, it said.
However, the statement added that the continuing discriminatory taxation and regulatory framework against cigarettes in India, which account for only 15% of overall tobacco consumption, is a major cause of concern.
The steep increase in the tax rates on cigarettes over the years, both at the central and at the state level, has led to the undesirable consequence of shifting consumption patterns to lightly taxed or tax-evaded tobacco products like bidi, khaini, chewing tobacco and gutkha, which constitute 85% of overall tobacco usage in India besides providing a fillip to illegal cigarette trade.
