ITC topline dips in first quarter

The segment, excluding cigarettes, posted a 12.2 per cent revenue growth.

July 31, 2015 12:16 am | Updated April 01, 2016 04:28 pm IST - KOLKATA:

FMCG major ITC suffered a drop in its topline during the first quarter of the current fiscal reporting a net sales of Rs.8,505.5 crore against Rs,9,184.4 in the same quarter of 2014-15. The net profit has increased by 3.6 per cent to Rs.2,265.4 crore from Rs.2,188.40 crore during this period.

Admitting that performance during the quarter was subdued, ITC said in a release the company attributed this performance to the “unprecedented pressure on legal cigarette industry volumes, sluggish demand conditions in the FMCG industry and lack of trading opportunities in wheat and soya.”

Although best known for its cigarettes business (which accounts for about 50 per cent of its revenues), ITC has multiple businesses which include foods, garments (other-FMCGs), hotels, paper and packaging and agri-business.

The segment, excluding cigarettes, posted a 12.2 per cent revenue growth, even as sales of ITC’s instant noodles (under its staples, snacks and meals business), were impacted by regulatory issues in the later part of the quarter.

Hotels registered a 15.7 per cent growth driven by better room occupancies and food and beverage revenues. The company said that agri-business was affected due to lack of export opportunities as export of Indian wheat was impacted by lower international prices and poor quality due to unseasonal rains.

The overall slowdown in the FMCG and cigarette industry affected ITC’s paper business with cheap imports.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.