ITC rose 0.69% to Rs 290.65 at 10:00 IST on BSE after net profit rose 7.4% to Rs 2561 crore on 4.3% growth in gross revenue to Rs 13722 crore in Q1 June 2017 over Q1 June 2016.
The result was announced after market hours yesterday, 27 July 2017.Meanwhile, the S&P BSE Sensex was down 144.43 points or 0.45% at 32,238.87.
On the BSE, 3.3 lakh shares were traded on the counter so far as against the average daily volumes of 12.56 lakh shares in the past one quarter. The stock had hit a high of Rs 294.90 and a low of Rs 289.90 so far during the day. The stock had hit a record high of Rs 353.20 on 3 July 2017. The stock had hit a 52-week low of Rs 222.05 on 26 December 2016.
The stock had underperformed the market over the past one month till 27 July 2017, sliding 7.38% compared with 4.6% rise in the Sensex. The scrip also underperformed the market in past one quarter, rising 1.25% as against Sensex's 7.84% rise. The scrip, however, outperformed the market in past one year, gaining 16.51% as against Sensex's 15.55% rise.
The large-cap company has equity capital of Rs 1216.18 crore. Face value per share is Re 1.
ITC said that it has delivered a steady performance in Q1 June 2017 against the backdrop of a challenging business environment marked by continuing pressure on the legal cigarette industry, sluggishness in demand for FMCG products exacerbated by destocking in trade channels ahead of implementation of GST. Also, there was subdued demand conditions and unabsorbed capacity in the domestic paperboard industry and lower crop output and adverse quality of the Andhra leaf tobacco crop due to draught in 2016.
The ban imposed by the Supreme Court on sale of liquor at outlets in close proximity to highways adversely impacted some of the company's hotel properties besides reducing offtake of carton packaging by customers in the liquor industry.
The company said that increase in excise duty on cigarette industry in February 2017, the revised rates under the GST regime and revised rates of compensation cess announced by GST Council will increase the tax burden of the cigarette business by 20%.
ITC is a diversified company, with presence in cigarettes, hotels, paperboards & specialty papers, packaging, agri-business, packaged foods & confectionery, information technology, branded apparel, personal care, stationery and other FMCG products. ITC is a market leader in cigarettes.
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