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Journalism of Courage
Slow volume growth in cigarettes and agri-products saw diversified conglomerate ITC on Friday missing analysts estimate while posting an 8.81 per cent year-on-year increase in its net sales at Rs 7,775.79 crore during the July-September quarter.
However,the companys net profit at Rs 2,230.53 crore was up 21.46 per cent,against last years Rs 1,836.42 crore,beating Street expectations.
Earnings before interest,tax,depreciation and amortisation (Ebitda) increased 18.5 per cent at Rs 3,090 crore,against a year ago period,while operating profit margin expanded 320 basis points on yearly basis to 39.7 per cent.
During the period ITCs net cigarettes sales grew by 10 per cent at Rs 3,723.81 crore. The company blamed the slow sales to higher and discriminatory taxes on the product along with prevalence of illegal manufacturing and smuggling for this.
The agri business saw net sales decline 12.41 per cent at Rs 1,772.46 crore,compared with Rs 2,023.88 crore.
The FMCG business saw net sales increase by 16.09 per cent to Rs 1,962.22 crore,compared with Rs 1,690.80 crore during the same period last year.
The companys net sales from the hotel business during the period grew 13.89 per cent at Rs 246.97 crore,compared with Rs 216.96 crore.
The hospitality sector continued to be adversely impacted by the weak economic conditions prevailing in major international source markets and India on the one hand,and significant additions to room supplies in key Indian cities on the other, the company said.
ITCs total expenses during the period went up by 3.84 per cent at Rs 4,907.56 crore,compared with Rs 4,725.91 crore in the year-ago period. The companys shares on Friday closed down 0.74 per cent at Rs 340 on the BSE.
