ITC 2nd quarter net profit up 12%
ITC Ltd on Friday reported an 11.9 per cent increase in net profit for the quarter ended September 30, 2018. Net profit during the quarter came in at Rs 2,954.67 crore against Rs 2,639.84 crore in the corresponding quarter of the previous year.
Gross revenue from the sale of products and services for the quarter was Rs 11,094.89 crore, a growth of 14.7 per cent driven mainly by FMCG (other than cigarette) and hotels.
The company’s revenue from cigarettes during the September quarter stood at
Rs 5,026.06 crore, up 10.36 per cent from Rs 4,554.21 crore in the same period last year.
“The legal cigarette industry, already reeling under the cumulative impact of steep increase in taxation over the previous five years and intense regulatory pressures, was further impacted by a sharp increase of 13 per cent in tax incidence (19 per cent increase for the king-size filter segment) under the GST,” the company said in a statement.
“Segment results for the quarter include the net impact of stocks damaged because of the floods in Kerala and costs related to changeover to the new graphic health warnings on cigarette packs with effect from September 1, 2018,” the statement added.
Revenue from FMCG-others, which include branded packaged food, apparel, education and stationery products, personal care products, registered a robust growth of 12.7 per cent at Rs 3,160.35 crore during the quarter against Rs 2,804.11 crore a year ago.