Agri-biz growth fuels ITC profit to Rs 1,891 cr - The Hindu Business Line
July 26, 2013
Riding on the back of a growth in agri-business and non-cigarette FMCG businesses, ITC Ltd posted 18 per cent growth in net profit to Rs 1,891 crore for the quarter ended June 30 compared with Rs 1,602 crore during the corresponding period last year.
On a sequential basis, however, profits dropped by two per cent from Rs 1,928 crore during the January-March 2013 quarter. During the April-June 2013 quarter, ITC posted 10 per cent growth in net sales.
Even while the cigarettes division posted seven per cent growth in value terms, however, the volume growth has shrunk by two per cent on a year-on-year basis.
According to Gaurang Kakkad, Vice-President-institutional research, Religare Capital Markets Ltd, the drop in volume growth is mainly due to the 15-16 per cent hike in prices which came into effect in April. The impact will be felt for the next 2-3 quarters.
Cigarette EBIT (Earnings before interest and taxes) margin was up by120 basis points on a year-on-year basis to 18 per cent.
ITC stock closed at Rs 358.80, down by 4.57 per cent on the BSE on Thursday.
