Turnover And Profit Increased at ITC

05/31/2009

ITC's gross turnover for the year to the end of March, at Rs231.440 billion, was increased by 8.4 per cent on that of the previous year. And net turnover, at Rs.153.880 billion, was up by 10.3 per cent, driven by what the company described as a "robust 20 per cent growth in non-cigarette FMCG [fast moving consumer goods] businesses and a healthy performance by the Paperboards, Paper & Packaging segments". The overall performance was achieved despite the "unprecedented increase" in excise duties on non-filter cigarettes as part of the 2008 budget, which wiped out this sector and which came close on the heels of an "un-paralleled levy of VAT on cigarettes in the preceding year". "The decline in hotel revenues in the wake of the economic slowdown and the unfortunate terror strikes in Mumbai, the continuing impact of high commodity prices and store rentals, brand building costs of the new personal care portfolio and the significant investments in augmenting the distribution infrastructure and systems combined to exert intense pressure on profitability during the year," ITC reported. Pre-tax profit increased by 5.6 per cent to Rs48.260 billion, while post-tax profit, at Rs32.640 billion, registered an underlying growth of 5.5 per cent after adjusting for income tax refunds. Enditem