Homegrown fast moving consumer goods (FMCG) major ITC on Friday reported 12.6 per cent year-on-year (YoY) growth in its standalone net profit at Rs 3,173.94 crore for the first quarter ended June 30, 2019.
"The diversified tobacco major had reported a standalone net profit of Rs 2,818.68 crore in the corresponding quarter of fiscal 2018-19," ITC said in a filing to the Bombay Stock Exchange.
Net sales rose by 5.7 per cent to Rs 11,502.82 crore in Q1FY20 as against Rs 10,874.59 crore in Q1FY19.
The company, which sells brands like Sunfeast biscuits, and Gold Flake cigarettes, posted 8.7 per cent YoY growth in operating profit at Rs 4,566 crore. Operating margin expanded 110 basis points (bps) at 39.7 per cent on a yearly basis.
On the consolidated basis, the Kolkata-headquartered firm reported a net profit of Rs 3,436.51 crore and net sale of Rs 12,532.31 crore during the quarter under review.
"The company's corporate strategy aims at creating multiple drivers of growth anchored on its core competencies. We are focused on four business groups: FMCG, Hotels, Paperboards, Paper & Packaging and Agri Business. The company's organisational structure and governance processes are designed to support effective management of multiple businesses while retaining focus on each one of them," ITC said in the exchange filing.
Total expenses increased 5.81 per cent to Rs 8,113.67 crore versus Rs 7,667.62 crore in the same period a year ago.
During the quarter under review, FMCG segment revenue increased 6.19 per cent to Rs 8,493.45 crore against Rs 7997.62 crore in the year-ago quarter. The cigarettes business revenue rose 6 per cent YoY to Rs 5,433.40 crore.
Segment wise, agri-business revenue jumped 15 per cent YoY to Rs 3,611.23 crore, hotel business revenue by 15 per cent YoY to Rs 392.6 crore, and paper and packaging business' revenue surged 13 per cent YoY to Rs 1,527.5 crore.
Ahead of Q1 earnings, shares of ITC closed 1.12 per cent lower at Rs 264.60 apiece on the Bombay Stock Exchange on Friday.
Edited by Chitranjan Kumar