Cigarette biz lights up ITC’s net profit to 20%

On expected lines,ITC,the third largest private sector company by market capitalisation,announced a 20.3 per cent growth in its net profit at Rs 1,602 crore

Written by ENS Economic Bureau | Mumbai | Published: July 27, 2012 1:03:35 am

On expected lines,ITC,the third largest private sector company by market capitalisation,announced a 20.3 per cent growth in its net profit at Rs 1,602 crore for the quarter ended June 2012 on the back of a healthy sales growth in both its cigarettes and non-cigarette FMCG business.

The company witnessed a growth of 15.3 per cent in its net sales from operations as it rose from Rs 5,767 crore in June 2011 to Rs 6,652 crore in June 2012.

While revenue from cigarettes business grew by 15 per cent (from Rs 2,873 to Rs 3,304 crore),that from non-cigarette FMCG business (branded packaged food,garments,personal care,educational products,etc) rose 23 per cent from Rs 1,197 to Rs 1,473 crore in the same period.

The profit before tax of the cigarette business rose strongly by 20.49 per cent while the PBT of non-cigarette FMCG business improved from a loss of Rs 76 crore in June 2011 to a loss of Rs 38.8 crore.

“Sales of value-added and premium products grew at a faster pace based on an enriched portfolio mix. Improvement in profitability was further aided by smart commodity sourcing and several strategic cost management initiatives,” said ITC.

“Key positive were losses in FMCG business and margin improvement in FMCG business even after duty high impact argues well. We expect company to sustain margin in cigarette business and FMCG to start contributing to bottom line,” said Rikesh Parikh,VP equities,Motilal Oswal Securities.

The company’s share price,however,closed the day at Rs 249.5 with a fall of 2 per cent during the day.

BHEL Q1 up 13% at R921 crore

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JSW Steel profit dips by 53.5%

Mumbai: JSW Steel announced a 53.5 per cent decline in its net profit as it stood at Rs 269 crore in the quarter ended June 2012 down from Rs 578 crore in the corresponding quarter last year. The company said the decline is on account of forex loss of Rs 592 crore due to depreciation in rupee. The company’s net sales rose by 28 per cent to Rs 9,030 crore. JSW Steel also reported over 78 per cent increase in its interest outgo of Rs 406.66 crore.

Biocon net up 12.49% at R79 cr

New Delhi: Biotechnology major Biocon has reported a 12.49 per cent rise in consolidated net profit to Rs 78.80 crore during the first quarter ended June 30,2012,on robust performance across business verticals. The company had posted net profit of Rs 70.05 crore for the April-June quarter of the 2011-12 fiscal,Biocon said in a statement. Consolidated total income of the company rose to Rs 576.68 crore in Q1.

Bata India’s net profit rises 28%

New Delhi: Footwear and accessories maker Bata India has reported 28.45 per cent increase in its standalone net profit for the quarter ended June 30 at Rs 52.65 crore. The company had posted a net profit of Rs 40.99 crore in the corresponding period last year,Bata India said in a filing to the BSE. The net income during the quarter went up by 17.16 per cent to Rs 506.51 crore from Rs 432.32 crore in the year-ago period,it added. ENS & Agencies

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