April 26, 2024 02:05 (IST)
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ITC Limited posts net profit of Rs 2495 crore for its Jan-Mar quarter
Kolkata, May 20 (IBNS) ITC Limited, with a leading presence in FMCG, hotels, agri and other businesses, reported a net profit of Rs 2495 crore, according to its financial results for the quarter and year ended March 31, 2016,
Net profit in the reported quarter was up 5.7 percent from Rs 2361 crore posted in the same quarter a year ago.
Gross revenue and rre-tax profit for the reported quarter up 9.8 per cent and 14.4 per cent, respectively.
For the full year, gross revenue crossed Rs. 50000 crores. Excluding agri-commodity exports, gross revenue was up 6.4 per cent over the previous year, said the company.
Pre-tax profit for the year up 6.9 per cent.
For the full year, the company said that its FMCG-Cigarettes Segment continues to be impacted by severe pressure on legal cigarette industry volumes even as illegal trade grows unabated. But the FMCG-Others Segment registered revenue growth of 7.7 per cent amidst sluggish demand conditions and price deflationary environment.
During the same time, in the Hotels Segment, revenue was up 8.4% aided by healthy growth in occupancy and Food & Beverage revenue but there was some impact from the gestation costs of ITC Grand Bharat and business disruption caused by heavy rains in Chennai during November/December 2015.
In the Agri Business Segment, full year revenue was impacted by lack of trading opportunities in wheat, coffee and soya due to higher crop output and steeper currency depreciation in competing origins. Improvement in profitability improvement was driven by superior product mix and higher realisations.
The company said that its Paperboards, Paper & Packaging Segment was impacted by slowdown in the FMCG and Cigarette industry, zero duty imports under Free Trade Agreement with ASEAN countries and cheap imports from China.
The company attributed the increase in effective tax rate -- up 280 bps to 34.2 per cent -- largely to increase in surcharge, change in income tax provisions relating to holding period for investments in debt oriented mutual funds to qualify as long-term capital asset, eligibility criteria for claiming investment allowance etc.
For the quarter ended March 31, the company said improvement in performance during the quarter was driven by improved realisations, margin expansion, benign input costs and favourable base effect.
But during the same time, revenue growth in the FMCG-Others Segment was impacted due to persistently sluggish demand environment, price deflationary scenario and trade pipeline synchronisation in the Notebooks category.
The company said that year 2015-16 has been a year of significant milestones for ITC Limited because it marks the completion of 20 years since the company embarked upon its corporate strategy of creating multiple drivers of growth and focusing on ‘Triple Bottom Line’ performance.
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