Led by non-cigarette segment revenue growth of 26.4 per cent, ITC closed the second quarter with a 21.3 per cent increase in its net profit which came on the back of a 19.6 per cent increase in net revenue. Net profit stood at Rs.1,836 .4 crore, while net income was Rs.7,226 crore during the second quarter.
For the six-month period ended September 30, 2012, net income from operations stood at Rs.13,939.7 crore against Rs.11,943 crore during the same period in 2011-12. Net profit during the period under review stood at Rs.3,438.6 crore against Rs.2,847 crore.
A company release claimed that the performance was remarkable when viewed against the backdrop of the slowdown in economic growth, sustained high inflation and the impact of the steep hike in taxes on cigarettes during the year.
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Business segments which recorded significant growth during the quarter under review were branded packaged foods, personal care products, and also the cigarette segment which still accounts for around half of ITC’s top line.
The hospitality sector continued to be adversely affected by the weak economic conditions, on the one hand and, over supply conditions on, the other. The segment saw a drop in profits. The quarter witnessed the launch of ITC Grand Chola in Chennai in September 2012.