The Hindu Business Line : ITC lights up on non-cigarette biz

Kolkata May 25 ITC Ltd, for the year ended March 31, 2007, has recorded a post tax profit of Rs 2,700 crore (Rs 2,235.35 crore), registering a growth of 20.8 per cent. Gross income has gone up by over 20 per cent to Rs 19,841.54 crore (Rs 16,510.51 crore).

Net turnover at Rs 12,369 crore (Rs 9,790.53 crore), up by 26.3 per cent, according to the company statement, has been driven by non-cigarette FMCG businesses. EPS for the year is placed at Rs 7.19.

ITC's non-cigarette portfolio is said to have grown by 37.6 per cent during 2006-07, now accounting for 52.3 per cent of the company's net turnover.

New unit

The company, for the quarter ended March 31, has posted a profit after tax of Rs 651 crore, up from Rs 568 crore achieved in the corresponding period of 2005-06. Net income (net sales plus other income) increased to Rs 3,568.62 crore (Rs 2,859 crore). Pre-tax profit for the quarter at Rs 940 crore has recorded a growth of little over 20 per cent and PAT at Rs 651 crore is said to be representing an underlying growth of 18.6 per cent, after adjusting for income-tax refunds.

The board of directors has recommended a dividend of Rs 3.10 per ordinary share of Re 1 each (previous year Rs 2.65 per share), entailing a cash outgo of Rs 1,364.49 crore.

The board has also okayed, as part of FMCG portfolio, the setting up of a new Strategic Business Unit (SBU) for Home and Personal Care products. Some of the fragrances, bath and body care products, including the perfumes and eau de toilettes under the brand name of `Essenza Di Wills' (the Wills Life Style range) were incubated under the India Tobacco Division of the company. These will now come under the new SBU to be headquartered in Kolkata.

Cigarette industry

ITC, as per the statement, has maintained its leadership position in the cigarette industry, with sales volumes registering a growth of over 7 per cent during 2006-07. Cigarettes, with effect from April 1, 2007, have been brought under 12.5 per cent VAT on invoice price.

The company's agri business revenues during the year grew by 38 per cent, driven by exports of soya, rice and leaf tobacco.

The company's agri business revenues during the year grew by 38 per cent, driven by exports of soya, rice and leaf tobacco. On the rural retail front, 18 ITC `Choupal Sagars' are now operational in the three States of Madhya Pradesh, Maharashtra and Uttar Pradesh. Leaf tobacco exports by ITC in 2006-07 grew by 21 per cent in value terms to touch an all-time high.

ITC's hotels business revenues grew by 26 per cent to touch Rs 986 crore, driven by better room rates, improved occupancies, and food and beverage sales.

More Stories on : Financial Performance | Diversified | I T C Ltd | Personal Products

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