ITC Q4 net profit jumps 26%

The total income during the fourth quarter also went up by 18.13 per cent to Rs 7,162.51 crore from Rs 6,063.38 crore in the year-ago period,it added.

For the entire 2011-12 financial year,the consolidated net profit rose by 24.72 per cent to Rs 6,258.14 crore from Rs 5,017.93 crore in the previous fiscal,the company said.

The company’s total income in FY’12 stood at Rs 27,336.14 crore compared to Rs 23,110.80 crore in FY’11,up 18.28 per cent,it added.

The Board of Directors has recommended a dividend of Rs 4.50 per ordinary share of Re 1 each for the year ended March 31,2012.

“Total cash outflow in this regard will be Rs 4,089.04 crores,including dividend distribution tax of Rs 570.75 crores,” ITC said.

Shares of ITC were closed 0.75 per cent down at Rs 231.75 apiece during the late afternoon on the BSE.

“During the year,the business witnessed sustained inflationary pressure on input costs. Supply side driven constraints coupled with growing demand caused prices of packaging materials,edible oil and industrial fuels to remain at inflated levels,” ITC said.

The cost pressures were mitigated through a combination of improvements in product and process efficiencies,smart sourcing and supply chain initiatives,it added.

During the January-March quarter,the company generated a net revenue of Rs 3,249.88 crore from its cigarettes business as against Rs 2,767.34 crore in the year-ago period.

“The cigarettes industry in India continues to be impacted by an environment of rapidly escalating challenges and discriminatory taxation.

“The steep increase in the tax rates on cigarettes,both at the central and at the state levels,has led to the undesirable consequence of shifting consumption patterns to lightly taxed or tax evaded tobacco products besides fuelling the rampant growth of illegal cigarettes,” ITC said.

The net revenue from non-cigarettes FMCG segment in the fourth quarter went up to Rs 1,616.50 crore from Rs 1,312.51 crore in the corresponding period last year.

“The branded packaged foods business grew significantly during the year,recording robust growth in revenues and enhanced market standing across segments,” the company said.

ITC,however,said its hotel business witnessed a fall in net revenue in the fourth quarter of last fiscal to Rs 285.84 crore from Rs 300.33 crore in the same quarter previous fiscal.

“The hospitality industry in India continued to be impacted by the slowdown of the domestic economy and adverse economic environment of the international feeder markets of the US and Europe…Both international and domestic business segments for the luxury hotels business remained muted,” the company said.

The agri business division had a net revenue of Rs 1,414.22 crore in last quarter as against Rs 1,081.83 crore in the year-ago period.

The net revenue from paperboards,paper and packaging segment also grew to Rs 979.94 crore from Rs 916.96 crore in Q4 of the FY’11 fiscal.

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