The Hindu Business Line : ITC reports 21.4% growth in Q3 profits

Kolkata, Jan. 21 ITC has reported a 21.4 per cent growth in net profit during the third quarter against the corresponding period in the previous year.

In absolute term it registered a PAT of Rs 1,389.08 crore (Rs 1,144.17 crore). The net sales stood at Rs 5,453.49 crore (Rs 4,599.56 crore).

According to a press release, the net sales grew by 19 per cent, primarily driven by foods, agri and paperboards divisions.

The agribusiness segment of the company posted a stronger performance during the quarter. The segment revenues and profits improved by 18 per cent and 36 per cent, respectively. The performance was underlined by higher soya and coffee trading volumes and improved performance in leaf tobacco exports.

According to market analysts, the company got the full benefit of the food and agro commodity inflation that raged during the quarter.

The press note said: “The business continues to provide strategic sourcing support to the company's cigarette and branded packaged foods business.” The note added that construction activity of the new green leaf threshing facility in Karnataka was progressing satisfactorily.

The company said the branded packaged foods business clocked an improved performance with sales growing by 24 per cent during the quarter.

It further said: “The hotels industry continues to make gradual recovery from the lows witnessed in 2008-09 and 2009-10. ITC's hotel business leveraged the relatively improved business environment to record a robust performance during the quarter with segment revenues and segment profits growing by 15 per cent and 16 per cent, respectively.

ITC's Re 1 shares were down 1.5 per cent on the NSE at Rs 169.10.