The Telegraph
Since 1st March, 1999
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ITC net jumps 12%

Calcutta, Oct. 24: ITC Ltd today unveiled a near 22 per cent growth in net revenues and a 12 per cent increase in net profit for the quarter ended September 30.

On a net income of Rs 1,519.61 crore (which includes an income of Rs 1,470.30 crore from sales) in the quarter, ITC registered a net profit of Rs 380.50 crore.

The company’s half-year net profit of Rs 724.42 crore was 13.5 per cent higher than last year. Net income during the first half was 20 per cent higher at Rs 2,953.60 crore.

The company posted a 9.7 per cent growth in its gross revenues from cigarettes, which an ITC release attributed to “volume growth and better product mix”.

Despite rapid diversification, cigarettes continue to be the mainstay of ITC’s business. Cigarettes still contribute about 80 per cent of ITC’s revenues. In the quarter ended September 30, ITC earned Rs 2,207.69 crore in gross revenues from cigarettes.

Turnover from other FMCG businesses (which include greetings card and lifestyle retailing among others) was Rs 16.20 crore — Rs 11 crore higher than the second quarter of the 20001-02.

Significant growth was achieved in the agri-business segment as well. Export of agri-commodities shot up to Rs 300 crore, as against Rs 131 crore in corresponding period of the last fiscal. Total income from the segment stood at Rs 463.27 crore during the last quarter.

An ITC release said the e-choupal network had been further expanded to cover 6,500 villages across the country through 1,200 installations.

Besides sourcing raw materials for its agri-business segment, ITC intends to use the network for distribution of diverse products and services, including insurance.

In the paperboards, paper and packaging segment, ITC posted a revenue growth of 13 per cent, while operating profits increased 19 per cent. The growth in revenues was driven primarily by a 36 per cent jump in sales of value-added paperboards.

There was marginal increase in revenues from the hotel business as well. ITC earned Rs 40.34 crore in revenues during the quarter as against Rs 35.65 crore in the corresponding period of 2001-02.

The company says there are some signs of recovery in tourist inflow thanks to the withdrawal of travel advisories. ITC manmanaged to trim its operating loss in the hotel business to Rs 32 lakh from Rs 3.45 crore in the second quarter of the last fiscal.

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