Beating street estimates, diversified conglomerate ITC Ltd posted a 16.74 per cent jump in its net profit to Rs 30.90 billion for the quarter ended December 31, 2017 although its total revenue, inclusive of other income, fell by 25.80 per cent at Rs 105.79 billion. Performances in ITC's non-cigarette segments and a one-time gain of Rs 4.13 billion on account of entry tax in Tamil Nadu, that was written back in the quarter, contributed to the enhanced profit figure. The net profit during the similar quarter of the last fiscal year stood at Rs 26.47 billion, while the revenue was registered at Rs 142.58 billion. On account of a projected decline in cigarette sales, analysts had previously estimated the company’s net profit to either remain flat or increase by a single digit. According to the company, there has been a positive swing in the profitability of the non-cigarette FMCG segment at Rs 670 million, driven by enhanced scale, product mix and cost management initiatives.
In the hotel business, the company registered an improvement led by increase in room rates, food and beverage revenue and operating leverage.
In the paperboards, paper and packaging segment, the profit jumped by nine per cent due to higher volumes, imported pulp substitution and benign input costs while the agri business performance was primarily impacted by limited trading opportunities, currency volatility and lower export incentives. The company said the legal cigarette industry continues to remain under pressure on account of sharp rise in the taxes under the GST regime. Shares of ITC Ltd ended one per cent up at Rs 273.85 on the BSE on Friday.