ITC clocked an 18 per cent growth in net profit in the first quarter ended June 30, 2013, at Rs.1,891.3 crore against Rs.1,602.1 crore in the same period a year ago.

The cigarettes-to-hotel major, witnessed top line growth across all its business segments barring hotels, which saw flat growth. Net sales from operations increased to Rs.7,338.5 crore from Rs.6,652.2 crore.

In a statement, ITC said that the results came in the backdrop of a challenging environment of a slowdown in private consumption expenditure and steep increase in excise duty on cigarettes.

The revenue growth was driven by agri business (Rs.2,188 crore against Rs.1,691 crore) as well as FMCG businesses, where non-cigarette business grew to Rs.1,750 crore from Rs.1,473 crore.

Weak global macro-economic environment and high levels of room inventory in key domestic markets continue to impact the performance of the hotels business. Paperboards, paper and packaging segment revenues increased by 9.9 per cent aided by new capacity addition. However, high input prices (of wood and coal) have impacted profitability, the statement said.

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