ITC beats estimates, posts net profit of Rs 3,209.07 crore for Q3

Diversified group ITC on Wednesday reported 3.84 per cent increase in standalone net profit at Rs 3,209.07 crore in the December quarter 2018 helped by good performance in FMCG and agri businesses. The company had posted a net profit of Rs 3,090.20 crore in October-December quarter a year ago, ITC said in a BSE filing. Gross revenue from sales was up 15.09 per cent to Rs 11,340.15 crore as against Rs 9,852.74 crore in the year-ago period. "Gross revenue for the quarter stood at Rs 11,340.15 crore, representing a growth of 15.1 per cent driven mainly by FMCG-others, agri business and paperboards, paper and packaging segment," said ITC in a statement.

In the third quarter of the previous fiscal, ITC had reported an exceptional income of Rs 412.90 crore. "Exceptional items in the previous period represent provisions for earlier years in respect of Tamil Nadu entry tax that were written back based on a favourable order of the Supreme Court," said ITC. Total expenses of the Kolkata-based firm were at Rs 7,446.46 crore, up 16.75 per cent as against Rs 6,377.90 crore in the December quarter 2017. During the quarter, revenue from total FMCG business was up 10.31 per cent to Rs 8,274.36 crore as against Rs 7,500.97 crore in the year-ago period.

Revenue from cigarettes was at Rs 5,073.38 crore, showing an increase of 9.59 per cent from the year-ago period. "Despite an extremely challenging operating environment, the business consolidated its leadership position in the industry and continued to improve its standing in key competitive markets across the country," ITC said.

FMCG-others segment was also up 11.46 per cent to Rs 3,200.98 crore in October-December 2018 as against Rs 2,871.78 crore in the year-ago period. This was "led by atta, snacks, premium cream biscuits and noodles in the branded packaged foods business, fragrance products and liquids (handwash and bodywash) in personal care products business and Classmate notebooks in education and stationery products business," said ITC.

FMCG-others segment of ITC consists of branded packaged foods as staples, snacks, meals, dairy and beverages, confections, apparel, education and stationery products, personal care products, safety matches and incense sticks. ITC's hotel business was also up 11.72 per cent to Rs 451.86 crore during the quarter as compared to Rs 404.44 crore in the corresponding period last fiscal.

"The business recorded a healthy growth in segment revenue during the quarter driven by improvement in ARR (Average Room Rate)," it said. Revenue from agribusiness segment was also up 25.72 per cent to Rs 1,924.61 crore as against Rs 1,530.86 crore in the December quarter of the previous fiscal. "Market opportunities in wheat and oilseeds along with enhanced focus on value-added portfolio, especially coffee, spices and aqua, resulted in robust growth in revenue during the quarter," said ITC.

Paperboards, paper and packaging segment was at Rs 1,542.51 crore, up 20.54 per cent from Rs 1,279.60 crore earlier. This was "driven by strong demand and capacity augmentation in Value Added Paperboard and D cor segments," it added. Shares of ITC settled at Rs 277.70 apiece, down 4.16 per cent from the previous close on BSE.

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