Diversified conglomerate ITC Ltd reported a 9 per cent growth in net profit to Rs 2,425 crore for the quarter ending September 30, 2014. For the corresponding period last fiscal, the net profit stood at Rs 2,231 crore.

Revenues or net sales during the quarter under review increased by approximately 15 per cent to Rs 8,930 crore, as against Rs 7,776 crore in the year-ago period.

Revenues during the July to September 2014 period were boosted by growth across all segments that include cigarettes and other FMCG offerings (branded packaged foods, apparels, education & stationary products, personal care products safety matches and agarbattis); hotels; paperboards, paper & packaging; and agri-business.

Segment results

Cigarettes continue to be the dominant contributor to both revenues and profits, with approximately 48 per cent or Rs 4,251 crore of its net sales coming from the segment.

Despite registering a growth in revenues, the non-cigarette FMCG category reported losses to the tune of Rs 10.31 crore. Similarly, the hotels segment too was in red and reported a net loss of Rs 9.58 crore.

In a media statement, ITC maintained that the hospitality industry continues to be impacted by weak economic conditions and the pricing environment.

“Segment results for the quarter include additional depreciation charge due to revision in useful life of fixed assets in accordance with the Companies Act, 2013,” it added.

Shares of ITC were trading at Rs 355.25, up by 0.07 per cent at the BSE around 2.10 pm on Friday.

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