Profit up 17

Despite its FMCG business outside cigarettes going deeper into the red, the first quarter of 2006-07 has found ITC Ltd grow its profit after tax by 16.8 per cent at Rs 652.28 crore. However, given that last year8217;s bottomline was propped up by a once-off income net of tax of Rs 19.49 crore, which came from the settlement reached with the owners of Searock Hotel, the company puts the underlying margin post-tax growth at 21.1 per cent.

The quarter ended June 30 2006 saw the company post a gross turnover of Rs 4,719 crore Rs 3,960 crore and a net income of Rs 2,934.69 crore Rs 2,351.40 crore.

On margins, cigarette yielded a growth of 17.41 per cent. The remaining FMCG business which includes branded packaged foods, lifestyle retailing, greeting, gifting and stationary and safety matches and incense sticks on the other hand, was a drag on the bottomline, with its losses mounting to Rs 58.18 crore Rs 54.66 crore.