Diversified conglomerate, ITC Ltd, reported a near 6 per cent jump in net profit to Rs 2,640 crore for the September quarter; as against Rs 2,500 crore in the year-ago period.

The comparable gross sales value (net of rebates/discounts) stood at Rs 16,392 crore, representing a growth of 4 per cent year-on-year.

To be sure, the FMCG major pointed out that gross revenues were not comparable as turnover in the September quarter of FY17 was calculated net of GST; while earlier it was gross of excise.

Cigarettes under pressure

Cigarettes, which account for over 80 per cent of the company’s profit before tax, saw a 2.33 per cent jump on a Y-o-Y basis to Rs 3,292 crore. However, industry volumes continue to be under severe pressure, which according to ITC is due to the sharp increase in tax incidence under the GST regime.

“The cigarette business had to contend with additional costs associated with the transition to GST due to non-availability of additional duty surcharge credit on transition stocks and the unanticipated revision of GST compensation cess, which impacted pipeline stocks,” it further said in a segment.