Industry

Strong FMCG business boosts ITC Q2 net profit

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ITC Ltd ON Friday reported 21.46 per cent increase in net profit at Rs. 2,230.53 crore for the second quarter ended September 30, driven by a strong performance in the FMCG business.

It had reported net profit of Rs. 1,836.42 crore in the July-September quarter of the previous fiscal, 2012-13.

Its net sales during Q2, 2013-14 increased by 8.81 per cent to Rs. 7,775.79 crore, from Rs. 7,146 crore in the year-ago period, ITC said in a filing to the BSE.

The company’s Q2 revenue from FMCG business increased by 12.01 per cent to Rs. 5,686.03 crore, as against Rs. 5,075.95 crore in the second quarter of last fiscal.

ITC’s FMCG business is divided into two categories - cigarettes and others. Revenue from cigarettes increased by 10 per cent to Rs. 3,723.81 crore, while the ‘others’ category showed an increase of 16.05 per cent at Rs. 1,962.22 crore.

Others in FMCG business 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.

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 ITC scrip closed at Rs. 340, down 0.74 per cent, on the BSE.

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Printable version | Sep 22, 2017 2:25:30 AM | http://www.thehindu.com/business/Industry/strong-fmcg-business-boosts-itc-q2-net-profit/article5272261.ece