India’s biggest cigarette maker ITC Ltd on Wednesday reported a growth of 10.5 per cent in its standalone net profit after taxes (PAT) at Rs 2,500.03 crore for the second quarter ended September 30, 2016 as cigarette sales increased 7 per cent.
“The standalone net profit of the Kolkata-based company stood at Rs 2,262.5 crore during the same period a year ago,” said ITC Ltd in a filing to the Bombay Stock Exchange on October 26, 2016.
Further, the standalone total income of the company grew by 8.4 per cent at Rs 14,091.96 crore during Q2 2016-17, as compared to Rs 13,003.86 crore during the same period last year.
The revenue from operations of ITC rose 7.8 per cent at Rs 13,491.37 crore for the quarter under review as against Rs 12,511.76 crore during September quarter of the previous fiscal, ITC Ltd said.
“The company delivered another quarter of steady performance despite a challenging operating environment marked by continuing pressure on legal cigarette industry volumes, increase in input cost and subdued demand conditions prevailing in the FMCG industry,” ITC said in a statement.
Revenue from the total FMCG business including cigarettes increased 8.5 per cent to Rs 11,200.13 crore from Rs 10,321.08 crore in the corresponding quarter of 2015-16.
During the quarter, revenue from cigarettes increased 7.1 per cent to Rs 8,528.47 crore from Rs 7,963.10 crore in the year-ago period.
The revenue from company’s hotel business rose by 2.50 per cent to Rs 297.34 crore, while its agri business grew by 1.96 per cent to Rs 1,880.06 crore.
“Segment revenue during the quarter was flattish in comparison to the corresponding period in the previous year reflecting the subdued operating conditions in the Indian hospitality industry, which continues to be impacted by excessive room inventory in key domestic markets and sluggish macroeconomic environment both in India and major source markets,” the company said.
Buoyed by earnings, shares of ITC closed at Rs 238.90 apiece, up 0.06 per cent, from previous close on BSE.