Business Daily from THE HINDU group of publications
Tuesday, Oct 31, 2006

Cross Currency

Group Sites

Home Page - Financial Performance
Corporate Results - Diversified
Web Extras - Cigarettes
Get Latest BSE Quote
ITC net profit grows 18.7%

Our Bureau

Foods, agri-biz, hotels drive growth in second quarter

Kolkata , Oct. 30

ITC Ltd has recorded a 32.3 per cent growth in net turnover during the second quarter ended September 30, 2006. The company has notched a net sales turnover of Rs 2,887.64 crore against Rs 2,183.15 crore recorded in July-September 2005. The growth in turnover has been attributed to the company's non-cigarette businesses, such as foods, agri-business and a strong performance by the company's hotels business.

ITC has recorded a profit before tax of Rs 957.76 crore (Rs 815.24 crore). The company's profit after tax rose 18.7 per cent to Rs 679.60 crore (Rs 572.33 crore).

The board of directors of ITC Ltd met here today to take stock of the financial results of the company for the quarter ended September 30, 2006.

Non-cigarette biz

According to a press release issued here, ITC's non-cigarette businesses grew by 53 per cent during the quarter and now account for 51.2 per cent of the company's net turnover.

The release states that the company's branded packaged foods business continued to expand rapidly with sales growing 54 per cent over last year. The Sunfeast range of biscuits stood further expanded with the introduction of Sunfeast Special in the fast-growing, mid-priced cookies segment. The quarter also saw the extension of Sweet n Salt Crackers to target markets. Product mix witnessed continued improvement on the back of enhanced sales of value-added products.


The Lifestyle retailing business grew by 64 per cent during the quarter. The company's portfolio of products in the premium segment comprising the `Classic' range of formal wear, `Wills Sport' relaxed wear and `Wills Clublife' evening wear continued to expand consumer franchise during the quarter.

In the popular segment, the distribution reach of `John Players' was further strengthened through the expansion of the `exclusive brand outlet' network and increased presence in key `multi-brand outlets'.

In the safety matches business, the company's brands enjoyed strong consumer preference. The anticipated synergies arising out of the recent acquisition of WIMCO Ltd by the company's subsidiary, Russell Credit Ltd, were being progressively realised. Market standing of the company's `Mangaldeep' brand of incense sticks continued to be strengthened.


With regard to the cigarettes business, the focus continues to be on delivering superior value to consumers through the introduction of modern format packaging in all segments and design enhancement of leading brands based on the latest technology. On the manufacturing front, investments were being channelised towards enhancement of quality, variety and productivity. The hotels business posted a strong performance during the quarter with segment revenues growing by 31 per cent to touch Rs 201 crore on the back of a 37 per cent growth in overall REVPAR (revenue per available room). Sales of value-added paperboards continued to record strong growth during the quarter, further enriching the product mix. These products now constitute approximately 50 per cent of the total paperboard sales.

Revenues from agri-business recorded a growth of 87 per cent during the quarter, driven primarily by exports of leaf tobacco and increased levels of trade in soya, non-basmati rice, chana and coffee.

The e-Choupal network was further ramped up during the quarter to 6,400 installations. The network now reaches out to over 3.5 million farmers in Madhya Pradesh, Haryana, Uttaranchal, Uttar Pradesh, Rajasthan, Karnataka, Maharashtra, Andhra Pradesh and Kerala, the release states.

More Stories on : Financial Performance | Diversified | Cigarettes | I T C Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Stories in this Section
Wheat MSP hiked by Rs 100

Ogni slams into Andhra coast
Credit demand strong in Q2, says RBI
RBI rate hike a given
Tata Motors Q2 net up 31%
Tata Steel Q2 net rises to Rs 1,101 cr
ITC net profit grows 18.7%
PNB posts 20-pc rise in PAT; deposit costs down
Forex loss, tax charge dent MphasiS BFL net
Reliance Comm posts Rs 702-cr net in Q2
Sensex at new high, tops 13,000
`Market likely to gain more in strength'
`Stay invested, but with parachutes'
Empire Ind betting on real-estate
Raunaq Auto: Steady accumulation
Shut mobile networks to check cheating, rigging

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line