ITC on Friday said its gross revenue went up by 5% to Rs 11,912.16 crore for the third quarter ended December 31, compared with the same period last year, which the company attributed to the hotel, agriculture and non-cigarette FMCG businesses.
The companys net profit for the period was up by 29% at Rs 4,141.93 crore beating Street estimates.The Kolkata-based conglomerate in its earnings release said the macro-economic environment continues to be adversely impacted as reflected in deceleration in GDP growth and weakness in consumption demand and investments.ITC, however, said expectations of a good rabi crop and a slew of measures announced by the government in recent months, including reduction in corporate tax rates, initiatives to boost infrastructure and promote exports will help in revival of the economy.The company reported an exceptional item of Rs 132.11 crore which is the cost of leaf tobacco stocks including taxes which were destroyed at a third-party warehouse due to fire, for which it has filed insurance claim which is under process.ITC also said the tax expenses for the quarter include a credit of Rs 340 crore.
This is after ITC exercised an option permitted under Section 115BAA of the Income-tax Act, whereby deferred tax liabilities (net) as at March 31, 2019 (arising mainly on account of the companys Make in India investments) and the estimate of tax expense for the ongoing fiscal year were re-measured.While ITC results were declared after trading hour, the scrip closed 0.6% higher at Rs 235.25 on the Bombay Stock Exchange on Friday even though the benchmark Sensex was down by 0.47%.ITCs cigarette business, which accounts for three of every four cigarettes sold legally, reported 4.7% growth in revenue at Rs 5310.98 crore.
The businesss gross profit improved 5.6% at Rs 3755.97 crore.
ITC said performance of the cigarette business reflects the persistent weakness in overall demand, especially in rural markets and wholesale channel, tight market liquidity conditions and increasing salience of illicit trade, especially at the premium end.The companys non-cigarette FMCG business -- which comprises of packaged food, personal care, stationary, safety matches and agarbatti -- revenue grew marginally at 3.5% at Rs 3312.32 crore highlighting consumers are still cautious about buying daily necessities and impact of the restructuring of the loss-making lifestyle retail business.
ITC said excluding the lifestyle retailing business, the FMCG business revenue was up by 6.1% with most major categories recording steady growth.
The business improved its earnings before interest, taxes, depreciation and amortization (EBITDA) by over 47% at Rs 255.82 crore.ITC, which runs the countrys second largest hotel chain, said the business revenue was up by 22% at Rs 552.31 crore, while segment EBITDA grew by 40%.
The agri-business revenue grew by 8.8% at Rs 2094.71 crore, while sales at the paperboards, paper and packaging business was almost flat due to subdued demand in the FMCG and liquor industry.ITC said it has appointed Atul Jerath as an additional non-executive director.
He is a representative of General Insurers' (Public Sector) Association of India.