ITC Q2 profits rise; revenues disappoint

Business

oi-Sunil

By Sunil Fernandes

Published: Saturday, October 26, 2013, 9:31 [IST]

FMCG to tobacco major, ITC Ltd reported a 21.46 per cent jump in net profit for the second quarter ended September 30, driven by a strong performance in the FMCG business.

The company posted a profit of Rs 2,230.53 crore in the July-September period against Rs 1,836.42 crore in the corresponding quarter of 2012-13.

The company's net sales during the quarter under review increased by 8.81 per cent to Rs 7,775.79 crore, from Rs 7,146 crore in the year-ago period. Analysts had expected revenues to rise to above Rs 8000 crores.

The company's second quarter revenue from FMCG business increased by 12.01 per cent to Rs 5,686.03 crore, against Rs 5,075.95 crore in the second quarter of last financial year.

ITC's FMCG business is divided into two categories - cigarettes and others.

'Others' include packaged foods (bakery and confectionery foods, snack foods, staples, spices and ready-to-eat foods), apparel, education and stationery products, personal care products, safety matches and incense sticks.

While revenue from cigarettes increased by 10 per cent to Rs 3,723.81 crore in the second quarter, 'others' showed an increase of 16.05 per cent in revenue at Rs 1,962.22 crore.

ITC's revenue from non-FMCG business, which includes hotels, agriculture and paperboard, paper and packaging, were at Rs 3,198.17 crore, a decrease of 3.08 per cent.

ITC's total expenses during Q2 were at Rs 4,907.56 crore, an increase of 3.84 per cent, compared with Rs 4,725.91 crore in the year-ago period. The stock which dropped late in trade on Friday, may continue to see selling pressure on Monday.

With inputs from PTI