Diversified group ITC Ltd has reported a net profit of ₹2,361.18 crore for the fourth quarter of 2014-15, up 7.8 per cent from ₹2,278.01 crore a year ago. The net profit for 2014-15 stood at ₹9,607.73 crore, up 12.5 per cent from ₹8,785.21 crore in the previous year. The company has recommended a dividend of ₹6.25 a share, or 625 per cent. The company scheduled its 104th AGM on July 31.

All the company’s verticals made operating profit in the fourth quarter as well as in the financial year.

ITC said in a press release that the Q4 performance was impacted by steep increases in excise duty and VAT on cigarettes. Cigarettes faced continued pressure on volumes. The vertical posted a profit of ₹2,706.15 crore (₹2,551.94 crore) in the fourth quarter.

The annual cigarette revenue rose 8.7 per cent. The non-cigarette FMCG segment registered a revenue growth of 11.3 per cent amid subdued demand conditions, ITC said. The company said it spent significant amount for the launch of new products in the non-cigarette FMCG segment.

It said the hospitality sector continued to be impacted by a weak pricing scenario in the backdrop of excessive room inventory in key domestic markets. The hotel segment results included additional depreciation charge owing to revision in useful life of fixed assets in accordance with the present legal provisions and gestation costs of new hotels.

Agri-business profit was up 8.3 per cent driven by greater product mix and higher realisation. The paperboards, paper and packaging segment was also impacted by the continuing slowdown in the FMCG industry, reduction of import duty under various regional free trade agreements and input cost pressures.

The ITC stock closed at ₹328.45 on the BSE, up 0.34 per cent.

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