ITC first quarter profit up 20% - The Hindu
July 27, 2012
ITC reported a 20.2 per cent increase in its first quarter (June 30, 2012) profit which came on the back of a 15.3 per cent increase in net revenue. The net profit was Rs.1,602 crore against Rs.1,332 crore. Net income was higher at Rs. 6,713 crore against Rs. 5852 crores in the year-ago period.
The company said that while non-cigarette FMCG segment posted robust growth, hotels business continued to be impacted by weak global and domestic environment.
ITC has a presence in hotels, paper and paperboards and packaging and agri-business besides branded packaged foods, garments, education and other stationeries, personal care products and matches and agarbattis.
In hotels, revenue has remained at the same level as the corresponding quarter of the previous year. ITC, has acquired a prime plot of land in Colombo, Sri Lanka, on a 99-year lease from the Government, for developing a five-star luxury property. ITC Grand Chola at Chennai is awaiting statutory clearances prior to commercial launch. Construction activity of the new luxury properties here (its second) and a golf resort near Gurgaon are on course.
In paper, results improved, driven by continuous enhancement in the product mix. A paperboard machine at Bhadrachalam and a new carton line at Haridwar are expected to become operational by end-2012-13.
Agri-business recorded significant improvement in profitability during the quarter aided by better realisations and richer mix across the portfolio.
PTI reports:
The company said several initiatives were launched during the quarter across the cigarette portfolio in terms of pack modernization and introduction of variants and limited edition packs under the Classic, Flake, Gold Flake Premium Filter brands.
"The business is also test marketing filter cigarettes of length not exceeding 65 mm. On the manufacturing front, investments continued to be made towards enhancement of quality, productivity and variety," it added.
The company posted revenues of Rs. 3,304.24 crore in the cigarettes segment in the first quarter ended June 30, as compared to Rs. 2,873.56 crore in the same period in 2011-12.
The company said hotel industry continues to be impacted by the weak global and domestic economic environment and significant additions to room supply in key Indian cities.
