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Diversified conglomerate ITC Ltd reported a net profit of ₹3,209 crore for the third quarter of FY19, with gross revenues of ₹11,340 crore.
In Q3 FY18, it had reported a net profit of ₹3,090 crore with gross revenues of ₹9,852 crore.
The results are not comparable on account of exceptional items, said the company.
A post tax exceptional item of ₹280 crore — for provisioning for a Tamil Nadu entry tax — was written back in the quarter following a favourable Supreme Court order.
Hence, the adjusted net profit (net profit after tax, but excluding exceptional items) stood at ₹2,820 crore.
On a like-to-like comparison, gross revenues saw a 15 per cent jump in Q3 FY19 over the corresponding quarter last fiscal.
According to a media statement, gross revenue growth was driven by “FMCG-Others, Agri Business and Paperboards, Paper & Packaging.”
Cigarettes & FMCG-Others
For the period under review, ITC’s cigarettes business saw a near 10 per cent jump in revenues to ₹5,073 crore, while profit before tax (PBT) saw a near 9 per cent jump to ₹3,558 crore.
An Edelweiss Securities report says margins were down 50 basis points YoY to 70.1 per cent (from 70.6 per cent in Q3 FY18) due to higher leaf tobacco prices and capsule filter usage.
On the other hand, the FMCG - Others vertical, which includes staples, snacks, meals, dairy, beverages, stationery products, personal care offerings and matches and incense sticks, saw an 11.5 per cent jump in revenues to ₹3,201 crore, and a 64 per cent jump in profit before tax to ₹77 crore.
Ongoing restructuring of the lifestyle retailing business affected numbers, ITC said, adding that “segment Ebitda posted 42 per cent growth”.
The hotels business saw a 12 per cent growth in revenue to ₹452 crore. PBT stood at ₹60 crore, up 10 per cent. Margins saw a minor 20 basis point contraction as per an Edelweiss Securities report.
The Paperboards, Paper & Packaging segment saw a 21 per cent rise to ₹1,543 crore and a 24 per cent jump in PBT to ₹332 crore. The Agri-business vertical saw a 26 per cent in revenues to ₹1,925 crore but witnessed a 15 per cent decline in PBT to ₹199 crore.
ITC shares tumbled 4.75 per cent on Wednesday to close at ₹276 on the NSE.
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