News Column

ITC Q4 net up 18.16% at ` 2,278 cr

May 25, 2014

DIVERSIFIED conglomerate ITC on Friday announced an 18.16 per cent increase in standalone net profit at ` 2,278 crore for the fourth quarter ended March 31 on the back of higher sales and lower costs.

ITC's move to shorten lowpriced cigarettes by 5 millimetres also helped to shore up the bottomline as demand went up with the product becoming cheaper due to the lower tax rate. The company generates about half its revenues from cigarettes.

The Kolkata- headquartered firm posted a profit of ` 1,927.9 crore in the January- March quarter of 2012- 13 fiscal.

Net sales rose 11.79 per cent to ` 9,145.14 crore in Q4, 2013- 14, from ` 8,180.30 crore in the year- ago period, ITC said in a statement.

During the quarter, overall expenses stood at ` 5,272.95 crore, down 8.4 per cent, compared to ` 5,757.77 crore in the year- ago period.

The company continued to deliver strong financial performance with healthy growth in revenues and high quality earnings. This performance is particularly commendable when viewed against the backdrop of the extremely challenging business context, the company said in a statement.

Revenue from the FMCG business, including cigarettes, climbed by 12.57 per cent to ` 4,078.78 crore, from ` 3,623.23 crore in Q4, 2012- 13.

Categories involving higher discretionary spends or with relatively high penetration levels were impacted the most, ITC said. Revenue from ITC's non cigarettes FMCG grew by 13.66 per cent to ` 2,314.51 crore, compared with ` 2,036.20 crore in the same period last year.

During the entire 2013- 14 fiscal, the company reported net profit of ` 8,891.38 crore, up 16.86 per cent as against ` 7,608.07 crore in the same period a year ago.

Net sales for the year were ` 34,984.70 crore, up 11.68 per cent, from ` 31,323.45 crore in the previous fiscal.

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Source: Mail Today (India)