ITC Q2 net profit up 6%

ITC Q2 net profit up 6%

 

ITC’S performance during the quarter was relatively subdued due to severe pressure on the legal Cigarette industry and sluggish demand conditions prevailing in the FMCG industry. Operating conditions in the Agri Business and Hotels segment also remained challenging.

Consequent to the introduction of Goods and Services Tax (GST) with effect from 1st July 2017, Central Excise [other than National Calamity Contingent Duty (NCCD) on cigarettes], Value Added Tax (VAT) etc. have been replaced by GST. In accordance with Indian Accounting Standard – 18 on Revenue and Schedule III of the Companies Act, 2013, GST, GST Compensation Cess, VAT, etc. are not included in Gross Revenue from sale of products and services for applicable periods. In view of the aforesaid restructuring of indirect taxes, Gross Revenue from sale of products and services and Excise duty for the quarter and six months ended 30th September, 2017 are not comparable with the previous periods.

On a comparable basis, Gross Sales Value* (net of rebates/discounts) stood at Rs. 16391.58 crores representing a growth of 3.9%. Profit Before Tax at Rs.3944.29 crores and Net Profit at Rs. 2639.84 crores registered a growth of 3.1% and 5.6% respectively during the quarter. Over 85% of the incremental value-added by the Company during the quarter accrued to the Exchequer. Earnings Per Share for the quarter stood at Rs. 2.17 (Q2 FY ’17: Rs. 2.07)

Total Comprehensive Income (TCI) for the quarter stood at Rs. 2610.80 crores representing a growth of 5.5%.

FMCG-Others

Segment Revenue registered robust growth of 10% on a comparable basis despite muted demand environment and disruption due to GST transition. This growth was driven by strong performance of the Branded Packaged Foods and Personal Care Businesses partly offset by the impact of ongoing restructuring of retail & trade footprint in the Lifestyle Retailing Business. While offtake in the retail channel has normalised progressively through the quarter, the wholesale channel is yet to fully recover. Market standing stood enhanced across major categories, particularly in atta, potato chips, premium cream biscuits and deodorants.