ITC beats Street, profit up 25%
FMCG major ITC on Thursday posted better-than-expected first quarter numbers for 2011-12, with net profit up 25% at R1,333 crore against R1,070 crore in the same period last fiscal though margins remained flat around 33.7%. Driven by good sales in branded packaged foods, hotels, cigarettes and agri businesses, net turnover grew 19.6% in the period to R5,767 crore. The cigarettes business, still the largest contributor to revenues, grew 16% year-on-year in net sales to R2,874 crore. The non-cigarette FMCG business net sales was up 20% at R1,198 crore in the quarter against R1,001 crore in the same quarter last fiscal. Revenues from ITC's hotels business was up 10% at R230.46 crore against R210 crore in the corresponding period last fiscal. Both the agri business and the paperboards, paper and packaging sales saw double digit growth during the quarter, with agri sales at R1,707.14 crore and paperboards at R959.57 crore. Analysts said the non-cigarette FMCG sector cut losses by over 14% to R76.28 crore during the quarter. Other segments, including hotels, posted profits. The cigarettes business, despite a stiff taxation regime, saw profits pegged at R1,577 crore during the quarter against R1,305 crore in the same period last fiscal. According to a company release, the branded packaged foods business recorded a 21% growth during the quarter, driven by biscuits, staples like atta and snacks. The personal care business saw new launches of soaps, shampoos and skin care categories. During the quarter, the business also entered the domestic talc market. During the quarter, the hotels business posted profit of R51 crore, growing by 33% from the year-ago period. While new hotels are coming up in Chennai, Kolkata and Gurgaon, the company said several new projects including joint ventures and management contracts are on the anvil to scale up the business.
SOURCE: www.financialexpress.com
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