Tobacco-to-hotels major ITC on Friday reported a 26.7% yoy growth in net profit for the third-quarter ended December 31, 2009, to Rs 1,144.2 crore compared to Rs 903.2 crore in the same period last year.
Net sales during the period grew 18.2% to Rs 4,531.9 crore as against Rs 3,833.3 crore. Pre-tax profit, at Rs 1,701 crore in the the quarter, was higher by 27.8% driven by growth in non-cigarette FMCG, agri and paperboard & packaging businesses.
In a statement issued after the board meeting, ITC said that “improved product mix, smart sourcing in the face of commodity inflation and intensive cost management actions also contributed to the sizeable growth in the company’s bottomline. While the FMCG and paperboard & packaging segments grew in net revenues led by growth in volumes, revenue growth in the agri business was driven by both volume and improved realisations.”
“Performance of the hotels business improved sequentially, though it is still caught in the throes of a weak recovery momentum,” the official communique stated. Earnings per share for the quarter stood at Rs 3.02.
Though the company’s cigarette business was adversely hit because of severe taxation, investments in products, innovation — coupled with consumer centricity — contemporary packaging styles and use of state-of-the-art manufacturing technology have enabled the business to deliver superior value through its brand portfolio of well crafted blends.
Investments are also being made to enhance quality, productivity and variety. Similarly, focused initiatives are being taken to strengthen the trade and distribution channels.
ITC’s paperboards, speciality papers & packaging business maintained its growth trajectory with net segment revenues increasing by 29%, driven by an enriched mix of valued added products, higher capacity utilisation and lower input costs.
“In the packaging & printing business, commissioning of investments in flexibles and carton lines augmented the company’s capability to deliver value-added packaging to customers in the consumer electronics and FMCG industries. Sales of carton packaging to external customers rose by 47% over the previous year,” the company release said.
While profit from the company’s agri-business improved significantly — primarily because leaf tobacco portfolio’s performance — the company’s hotels business recovered on the back of India’s resilient growth. The business witnessed substantial improvement in both occupancies and average room rates during the quarter.
ITC continued to pursue an aggressive, investment-led growth strategy in line with the longer term potential of the sector and the need for greater room capacities commensurate with India’s economic growth.
Source : http://economictimes.indiatimes.com/news/news-by-company/earnings/ITC-Q3-net-up-27-at-Rs-1144-cr/articleshow/5490045.cms
Net sales during the period grew 18.2% to Rs 4,531.9 crore as against Rs 3,833.3 crore. Pre-tax profit, at Rs 1,701 crore in the the quarter, was higher by 27.8% driven by growth in non-cigarette FMCG, agri and paperboard & packaging businesses.
In a statement issued after the board meeting, ITC said that “improved product mix, smart sourcing in the face of commodity inflation and intensive cost management actions also contributed to the sizeable growth in the company’s bottomline. While the FMCG and paperboard & packaging segments grew in net revenues led by growth in volumes, revenue growth in the agri business was driven by both volume and improved realisations.”
“Performance of the hotels business improved sequentially, though it is still caught in the throes of a weak recovery momentum,” the official communique stated. Earnings per share for the quarter stood at Rs 3.02.
Though the company’s cigarette business was adversely hit because of severe taxation, investments in products, innovation — coupled with consumer centricity — contemporary packaging styles and use of state-of-the-art manufacturing technology have enabled the business to deliver superior value through its brand portfolio of well crafted blends.
Investments are also being made to enhance quality, productivity and variety. Similarly, focused initiatives are being taken to strengthen the trade and distribution channels.
ITC’s paperboards, speciality papers & packaging business maintained its growth trajectory with net segment revenues increasing by 29%, driven by an enriched mix of valued added products, higher capacity utilisation and lower input costs.
“In the packaging & printing business, commissioning of investments in flexibles and carton lines augmented the company’s capability to deliver value-added packaging to customers in the consumer electronics and FMCG industries. Sales of carton packaging to external customers rose by 47% over the previous year,” the company release said.
While profit from the company’s agri-business improved significantly — primarily because leaf tobacco portfolio’s performance — the company’s hotels business recovered on the back of India’s resilient growth. The business witnessed substantial improvement in both occupancies and average room rates during the quarter.
ITC continued to pursue an aggressive, investment-led growth strategy in line with the longer term potential of the sector and the need for greater room capacities commensurate with India’s economic growth.
Source : http://economictimes.indiatimes.com/news/news-by-company/earnings/ITC-Q3-net-up-27-at-Rs-1144-cr/articleshow/5490045.cms
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