ITC Q1 2014 net profits at Rs 1890 crores: stock drops

Business

oi-Sunil

By Sunil Fernandes

Updated: Thursday, July 25, 2013, 12:31 [IST]

Tobacco to hotel major ITC has reported a disappointing sales growth, but net profits have come in line with estimates at Rs 1890 crores for Q1 2014.

Gross income at the company has come in at Rs 11,002 crores for the quarter ending June 30, 2013 was lower then expectations, as against Rs 9681 crores for the previous quarter.

The cigarettes business continued to be a mainstay for the company with revenues from the segment coming at Rs 6880 crores, while the hotels business reported revenues of Rs 250 crores.

Margins at the company improved, while a drop in revenue growth was worrying for the company. The ITC stock was trading lower by 3 per cent, following the results.

It may be recalled that the stock had run up sharply very recently, and analysts considered the valuations for the company as very steep. The stock was last trading at Rs 364 on the National Stock Exchange.

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