Non-Tobacco Sales Fuel ITC's 19% Net Growth

Source from:  CORPORATE BUREAU Tuesday, October 31, 2006 at 0045 hours IST  11/01/2006

KOLKATA, OCT 30: Tobacco-FMCG-hotels conglomerate ITC Ltd on Monday reported 18.74% growth in its Q2 net profit in financial year 2006-07 to Rs 679.60 crore, up from Rs 572.33 crore in Q2 of 2005-06. Gross income grew 23.27% to Rs 4704.36 crore, up from Rs 3816.24 crore. The results were in step with analysts' expectations. Revenue was powered by 53% growth in ITC's non-cigarettes businesses, which account for 51.2% of turnover. But losses of its recent ventures in the fast-moving consumer goods (FMCG) category continued to mount to Rs 49 crore in the latest quarter against Rs 35 crore in the same quarter of the previous year. The cigarettes business-which ITC also classifies as FMCG-continued to fuel its other segments with 15% growth in profit to Rs 787 crore on the back of 14% growth in segment revenue to Rs 3,102 crore. The segment revenue includes taxes. Among its non-cigarettes FMCG businesses, branded packaged foods grew 54% over last year. In staple foods, Aashirvaad Atta increased its market share among branded players to 52%. Lifestyle retailing grew 64% during the quarter and the stationery business by 77%. ITC said its hotels business grew by 31% in the quarter and agri-business by 87%. Enditem