ITC Q3 net profit grows 29% to Rs 4,048 crore- Business News


ITC saw its consolidated net profit increase 29.03 per cent on annual basis during quarter ended December 31, 2019, primarily on the back of lower tax cost. The FMCG major reported consolidated net profit of Rs 4,047.87 crore for the quarter under review as opposed to Rs 3,136.95 crore in the year-ago period.

ITC’s net sales increased 5.71 per cent during the December quarter this fiscal to Rs 13,220.30 crore, as opposed to Rs 12,506.05 crore in the corresponding period a year ago, ITC said in a filing to the bourses. Total expenses for Q3 FY20 were pegged at Rs 8,779.14 crore, following a year-on-year increase of 5.25 per cent against Rs 8,340.61 crore.

Revenue growth in agri-business segment was driven by trading opportunities in oilseeds, pulses and coffee and scaling up of value-added segments, ITC said in a statement. However, subdued demand for leaf tobacco in international markets, accentuated by relatively steeper depreciation in currencies of competing origins and adverse business mix, weighed on segment results, the company further added.

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“The education and stationery products business strengthened its leadership position in the notebooks category, leveraging a pipeline of innovative products of superior quality and enhanced consumer connect,” ITC said.

ITC said it retained pole position in the cigarettes business during the December quarter. “Performance during the quarter reflects the persistent weakness in the overall demand environment, especially in rural markets and wholesale channel, tight market liquidity conditions and the increasing salience of illicit trade especially at the premium end,” the company stated.

“The Business posted a strong performance during the quarter with Segment Revenue and Segment EBITDA growing by 22.2% and 40.1% respectively. There was all round improvement, with both existing and new properties recording robust increase in RevPAR and F&B sales. Higher room rates and operating leverage aided margin expansion,” ITC further added.

Shares of ITC Friday settled at Rs 235.25 apiece on the BSE, up 0.60% from their previous close.

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