ITC net rises 25% on all-round growth in sales -The Hindu Business Line
July 28, 2011
Riding on the back of an all-round growth in sales across various segments, ITC Ltd has posted a 25 per cent rise in net profit at Rs 1,333 crore for the quarter ended June 30, 2011, against Rs 1,070 crore during the same period last fiscal.
On a sequential basis, the net profit rose about four per cent from Rs 1,281 crore during the fourth quarter ended March 31, 2011. Net sales grew 20 per cent to Rs 5,767 crore.
Revenues from cigarettes business grew 16 per cent to Rs 2,874 crore, while that from the non-cigarette FMCG business increased 20 per cent to Rs 1,198 crore.
The branded packaged foods business witnessed a sales growth of 21 per cent. "The business achieved significant improvement in profitability driven by an enriched product mix, better realisations, smart sourcing, improved market servicing and cost management actions. During the quarter, the business continued to focus on enhancing consumer franchise through new product launches, product extensions and focused communication," according to a company press release.
The business continued to invest in manufacturing and distribution infrastructure to support larger scale in view of the growing demand for its products and to maximise the benefits of distributed manufacturing for servicing proximal markets.
Revenues from the agri business segment grew 26 per cent to Rs 1,707 crore. The sales growth was driven by higher trading volumes and improved realisations in soya, wheat and coffee, the release said.
The paperboards and packaging division grew 21 per cent to Rs 960 crore on account of an 'enriched product mix and better realisations'. The hotels division posted a growth of about ten per cent to Rs 230 crore.
