ITC net up 16.2%

Source from:  Business Line (The Hindu) 05/31/2004

ITC Ltd has recorded a growth of 16.2 per cent in profit after tax at Rs 1,593 crore in 2003-04 against Rs 1,371 crore for 2002-03. The pre-tax profit has increased by 12.8 per cent to Rs 2,319 crore (Rs 2,056 crore). Net sales for the period under review were placed at Rs 6,470.44 crore (Rs 5,865.78 crore). The gross income was placed at Rs 12,039.92 crore (Rs 11,194.47 crore). After adjusting for the once-off opportunity of rice exports in 2002-03, the underlying top line growth over that in 2002-03 was put at 11.8 per cent. The PAT for the quarter increased to Rs 387.06 crore (Rs 323.42 crore), on a gross income of Rs 3,307 crore (Rs 2,839 crore). The ITC board, which took on record the annual results at its meeting here on Friday, has recommended a dividend of Rs 20 per share (200 per cent) up from Rs 15 per share paid last year, entailing a cash flow of Rs 559 crore, comprising proposed dividend of Rs 495 crore and income tax on the same at Rs 64 crore. According to an official release by the company, agri commodity exports (soya, rice, coffee and marine products) during the year have touched Rs 574 crore, registering an increase of 58 per cent over the previous year (after adjusting for the once-off opportunity of rice exports in 2002-03), primarily on the back of healthy soya exports. On the leaf tobacco front, export volumes are said to have grown by a substantial 40 per cent over previous year, and 20 per cent by value (in dollar terms) despite the global demand-supply situation compounded by the appreciation of rupee vis-à-vis dollar. It is stated that at the processing end, the company's leaf threshing facility at Chirala in Andhra Pradesh reached optimum productivity during the year to emerge as a benchmark facility for green leaf threshing plants globally. Leadership in the FMCG-cigarettes segment, despite challenging circumstances, has been maintained, recording a revenue growth of 5.3 per cent during the year. The sales have been largely driven by an improved product-mix and a volume growth of 3 per cent. According to the company, the new FMCG businesses have posted rapid top line growth on the back of new product launches and extension of existing products to target markets. The segment reports indicate that revenues from these businesses grew threefold during the year, contributing Rs 304 crore to ITC's top line. The hotels business posted growth in revenues of 33 per cent on the back of improved occupancies and room realisations following an upturn in industry. Operating profits of this segment at Rs 32.51 crore were said to have trebled compared to last year. ITC Grand Central, the company's second property in Mumbai is well on course for commercial launch by end 2004. ITC Sonar Bangla in city has posted a cash break-even in its first full year of operations, says the release. Enditem