ITC reports 4% rise in Q3 profit

Kolkata-headquartered diversified conglomerate ITC Ltd on Wednesday registered a 4 per cent YoY growth in its profit at Rs 3,209 crore, riding on a 30 per cent YoY rise in its other income in Q3 (Q3 other income stood at Rs 836.4 crore). Interestingly, ITC’s profit in the corresponding quarter of last fiscal stood at Rs 3,090 crore, which included an exceptional gain of Rs 413 crore.

The revenue of the cigarette-to hotel to FMCG major went up 15 per cent on a yearly basis to Rs 11,227.7 crore, as compared to an estimated revenue of Rs 10,881 crore. Operating income, or earnings before interest, tax, depreciation and amortisation, move up 11 per cent year-on-year to Rs 4,326.26 crore, against analysts’ estimates of Rs 4,373 crore.

“Gross Revenue for the quarter stood at Rs. 11340.15 crore, representing a growth of 15.1 per cent driven mainly by FMCG-Others, Agri Business and Paperboards, Paper & Packaging. Profit after Tax before considering exceptional items, grew by 13.8 per cent - a 17-quarter high. Total Comprehensive Income stood at Rs. 3637.01 crore (previous year Rs. 3177.06 crore),” an official communiqué from the company said.

The overall, Ebitda (earnings before interest, tax, depreciation and amortisation) grew by 11.2 per cent to Rs 4,325.8 crore YoY, but margin dipped to 38.5 per cent against 39.8 per cent year-ago.

“The FMCG-Others segment posted a steady performance during the quarter with Revenue growing by 11.5 per cent led by atta, snacks, premium cream biscuits and noodles in the branded packaged foods business, fragrancing products and liquids (handwash & bodywash) in the Personal Care Products business and Classmate Notebooks in the education & stationery products business. Growth in overall segment revenue was partially impacted by the ongoing restructuring of the Lifestyle Retailing Business and structural changes pertaining to the timing of trade promotions in the matches and agarbatti business,” the company said.

Meanwhile, the cigarette business of the company, which contributed over 40 per cent to total revenue, increased 9.6 per cent to Rs 5,074 crore in Q3FY19 with its Ebit (earnings before interest and tax) rising 8.8 per cent YoY but margin contracted to 70.1 per cent against 70.6 per cent in same period last year.