The Hindu Business Line : ITC net climbs 25% to Rs 582 crore — Non-cigarette topline accounts for 49% of net sales

ITC Ltd, for the quarter ended December 31, 2005, has registered a 24.8 per cent increase in its post-tax profit (before exceptional items) to Rs 582.27 crore (Rs 466.70 crore).

Pre-tax profits for the quarter at Rs 842.58 crore have shown a growth of 26.6 per cent, according to a press note issued by the company here today.

The gross income (comprising segment revenue and other income) at Rs 4,239.08 crore (Rs 3,314.09 crore) has recorded a growth of 28.5 per cent, while net turnover at Rs 2,556 crore grew by 37 per cent, driven by cigarette sales, ramp up of the new FMCG businesses and improved performance of the hotels and paperboards businesses. EPS (post-share split and bonus issue) for the quarter is placed at Rs 1.55.

Total expenditure for the period under review is put at Rs 1,677.70 crore (Rs 1,152.49 crore). Provision for taxation (including prior year adjustments) is at Rs 260.31 crore (Rs 198.69 crore).

Record quarter sales: It is stated that the non-cigarette topline, which now accounts for 49 per cent of ITC's net turnover, grew by 57 per cent during the quarter. According to the company's statement, the three-month period ended December 31, 2005, witnessed achievement of the highest-ever sales and profits (before exceptional items) declared by ITC in any quarter.

Printing & packaging: It is pointed out that the Packaging and Printing business continued to leverage its recent investments in technology upgradation to expand its range of offerings to include a wider variety of contemporary packaging formats.

This has enabled the packaging business to provide superior and innovative packaging solutions not only to the in-house business but also to the FMCG and Paperboards businesses. It is stated that the investments have begun delivering substantial savings to the ITC system, and that plans are under way to augment capacity both in the Cartons and Flexibles segment.

Agri biz: In agri-business, the company has further ramped up its e-choupal network to 5,500 installations, reaching out to over three million farmers in Madhya Pradesh, Uttar Pradesh, Maharashtra, Rajasthan, Karnataka, Kerala and Andhra Pradesh.

Agri-business revenues during April-December 2005, according to the company, have grown by 63 per cent, largely driven by wheat, non-basmati rice exports and leaf tobacco. It is clarified that segmental results (Rs 14.92 crore from Rs 20.72 crore in the same quarter of last fiscal) during the period were impacted owing to incremental costs associated with scaling up of the choupal network and lower margins in leaf tobacco exports consequent to change in sales mix during the period.