ITC Q4 net profit rises 9.8% to Rs2,933 crore

Marco Green
May 17, 2018

FMCG major ITC Ltd on Wednesday reported a 9.9 per cent increase in net profit for the fourth quarter ended on March 31, 2018, driven mainly by non-cigarette FMCG and hospitality businesses.

The rise in operating profit, as indicated by earnings before interest, depreciation and taxes, has gone up 7% to Rs 4,144 crore, with a corresponding rise in margins to 39.1% from 34.8% on the back of a 38% drop in expenses to Rs 6,996.46 crore from Rs 11,363.78 crore.

During the quarter, revenue from cigarettes was at Rs 4,936.45 crore.

ITC said it was making progress on the construction of hotels in Hyderabad, Calcutta and Ahmedabad and WelcomHotels in Guntur and Bhubaneshwar.

Revenue from cigarettes during the March quarter fell by nearly 45 per cent to Rs 4,936.45 crore over Rs 8,954.94 crore in same period of previous fiscal.

During the day, the Kolkata-headquartered company elevated chief executive officer and director Sanjiv Puri to the post of managing director, which was vacant following the retirement of Y C Deveshwar from his executive role in February 2017.

Revenue from FMCG-Others segment was at Rs 3,051.82 crore during January-March quarter.

"Shortage of leaf tobacco in Andhra Pradesh due to lower crop output on account of drought in 2016 and adverse crop quality, relative strength of the Rupee vis-à-vis currencies of competing origins and limited trading opportunities in other agri-commodities weighed on the performance of the Agri Business", said ITC.

The paperboards, paper and packaging segment was impacted by a slowdown in the legal cigarette industry, cheap imports and unutilised capacity of paperboards, ITC said.

It has also recommended a dividend of Rs 5.15 per ordinary share of Re 1 each for 2017-18.

A Bloomberg poll of analysts expected ITC's net income and revenue of Rs 2,920 crore and Rs 11,940 crore in Q4FY18 respectively.

On the BSE, 6.63 lakh shares were traded in the counter so far compared with average daily volumes of 6.45 lakh shares in the past two weeks.

Other reports by Click Lancashire

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