ITC Slumps 3% As Profits Lag Estimates

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    Shares in cigarette to hotel major ITC slumped almost 3 per cent in trade after the company's results lagged estimates.

    The stock recovered marginally and was last trading at Rs 322 on the National Stock Exchange (NSE).

    ITC Slumps 3% As Profits Lag Estimates
    ITC declared results on Friday after market hours and all the reaction took place this morning. The company's net profits were hit largely by taxation on cigarettes and come in below expectations.

    The company reported a net profit of Rs 2361 crores, as against expectations of around Rs 2500 crores.

    "The muted growth in revenue and profits during the quarter reflects, inter alia, the continuing impact of the steep hike in taxation on cigarettes, sluggish demand conditions in the FMCG industry, start-up costs of the Juices category, lack of trading opportunities in agri-commodities and costs relating to rationalisation of Safety Matches manufacturing operations," the company said in a release.

    The hotels business also had a difficult year. "The hospitality sector continued to be adversely impacted by a weak pricing scenario in the backdrop of excessive room inventory in key domestic markets and sluggish macroeconomic environment both in India and key source markets," the company said in a statement.

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