ITC on Monday announced a growth of 18.7% in its profit after tax for the quarter ended September 30 at Rs 679.60 crore from Rs 572.33 crore in the corresponding quarter the previous year.
KOLKATA: ITC on Monday announced a growth of 18.7% in its profit after tax for the quarter ended September 30 at Rs 679.60 crore from Rs 572.33 crore in the corresponding quarter the previous year.Driven by non-cigarettes businesses, sales turnover for the quarter under consideration rose a strong 32.3% to Rs 2,887.64 crore from Rs 2,183.15 crore in the same period.
Non-cigarettes business grew 53% during the quarter and now accounts for 51.2% of ITC’s net turnover. The key growth drivers, according to a company statement, were the continued ramp-up of its foods business, higher agri-business revenues and a strong performance by its hotels division.
Profit before tax, at Rs 957.76 crore (815.24 crore), grew 17.5%. Earnings per share for the quarter stood at Rs 1.81.
For the half year ended September 30, 2006, the PAT grew 17.8% while sales turnover increased by 29% to Rs 5737.39 crore (4450.03 crore).
The performance matched analysts’ estimates.
Revenue from sale of cigarettes increased 14% to Rs 3,102 crore on better prices realisation. The company had raised the prices of its Gold Flake Kings and Scissors brands by as much as 20% last month.
Sales growth in the cigarettes business shows that “with increasing income levels, price increases will get absorbed,” said Abhijeet Kundu, an analyst at Prabhudas Lilladher Securities in Mumbai, who has a “buy” rating on the stock.
Shares of ITC, however, closed 0.2% below the previous close at Rs 187.50 on the Bombay Stock Exchange on Monday.
The stock has gained 32% since the start of the year, compared with a 39% rise in the Sensex, which closed the day at a record 13,024.26.
With inputs from Bloomberg
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