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Our Bureau

Kolkata, Oct. 26 ITC Ltd, for the quarter ended September 30, 2007, has recorded a growth in profit after tax of 13.4 per cent at Rs 771 crore, up from the Rs 680 crore achieved for the corresponding quarter of the previous financial year.

Net turnover at Rs 3,273 crore has increased by 14.2 per cent, against the Rs 2,866 crore achieved during the same quarter of 2006-07. Provision for taxation for the period under review was 30 per cent higher at Rs 362.26 crore (Rs 278.16 crore). EPS was up at Rs 2.05 (Rs 1.81).

The company statement announcing the second-quarter results, taken on record by the board at its meeting here on Friday, attributes the turnover and net profit growth to robust scale-up of the foods, lifestyle retailing and stationery businesses, coupled with healthy growth shown by the hotels and paperboards & packaging segments.

The non-cigarette businesses for the quarter, according to the company, grew by 17 per cent.

Significantly, during the quarter, revenues of the Agri Business segment declined by 13 per cent. According to the company, the adverse impact was owing to the business having to dispose off agri commodities in the domestic market at prices lower than those paid to farmers through the e-Choupal network.

This is attributed to the ban on exports and nil duty imports, which along with subsidised auction sales, are said to have depressed prices in the domestic market. The sharp appreciation of the rupee is said to have affected realisations on exports contracted in the past at US dollar-denominated rates.

Barring unforeseen events, the company expects the agri business segment to pick up in the coming quarters, with market dynamics getting restored in the agri commodities sector. Apart from hedging, the business is re-negotiating prices for US dollar-denominated export orders to address the impact of the hardening rupee.

The ITC scrip closed on Friday on BSE at Rs 180.80, against Thursday’s close of Rs 182.85.

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

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