April 26, 2024 20:04 (IST)
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ITC Ltd's net profits sees a marginal rise in the December quarter
Kolkata, Jan 22 (IBNS): Kolkata-based tobacco to FMCG major ITC Ltd, which published its December 2015 quarter results on Friday, said its performance during the reported quarter remained subdued reflecting the severe pressure on legal cigarette industry volumes, lack of trading opportunities in agri-commodities and sluggish demand environment prevailing in the fast moving consumer goods (FMCG) industry.
The company’s net revenue stood at Rs 9,102.66 crores, up from Rs 8800.22 crore posted in the December 2015 quarter. Net Profit at Rs 2652.82 crores registered a meagre increase of 0.7%. Earnings per share for the quarter stood at Rs 3.30.
The company’s revenue in the FMCG-Others Segment was up by 7.1% amidst a sluggish demand environment and supply chain disruption caused by heavy rainfall and floods in Chennai, said the press release.
In the Hotels segment, revenue went up 4.5% aided by healthy growth in occupancy and Food & Beverage revenue but offset by the impact of gestation costs of ITC Grand Bharat and Chennai floods.
The Agri Business segment was affected by the lack of trading opportunities in wheat, coffee and soya coupled with subdued demand for leaf tobacco exports on the back of a decline in global cigarette volumes.
The company said that its Paperboards, Paper & Packaging segment fared well owing to richer sales mix and benign input costs. Domestic industry continues to face pressure on account of reduction of import duty under various regional Free Trade Agreements and cheap imports from China.
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