ITC sees 29% jump in Q3 net profit to ₹4,142 crore

Our Bureau Kolkata | Updated on January 31, 2020

Diversified conglomerate ITC Ltd reported a 29 per cent jump in net profit to ₹4,142 crore for the quarter ending December 31, 2019. The company’s net profit in the year-ago period stood at ₹3,209 crore.

ITC’s gross revenue from sale of products and services increased by 5 per cent, year-on-year, to ₹11,912 crore, during the period under review. It stood at ₹11,340 crore in the corresponding period last fiscal.

According to a media statement issued by ITC, the macro-economic environment continues to be adversely impacted as reflected in deceleration in GDP growth and persistent weakness in consumption demand and investments.

“Delayed arrival of the Kharif crop due to spatial variations in rainfall especially close to the harvest season, commodity price inflation together with disruptions in certain parts of the country exacerbated the already challenging operating environment during the quarter,” it added.

All verticals, which include cigarettes; other FMCG offerings (branded packaged foods, apparel, education and stationery, personal care, matches and incense sticks); hotels business; paperboards, paper and packaging; and agri business reported an increase in turnover.

In terms of profit before tax (PBT), all the verticals also reported increase in numbers.

The FMCG-others segment, which accounted for another 26 per cent of gross revenues, saw 40 per cent jump YoY in PBT for the third quarter (Oct-Dec) to ₹108 crore.

“Expectations of a good rabi crop and a slew of measures announced by the government in recent months including reduction in corporate tax rates, initiatives to boost infrastructure and promote exports, augur well for the revival of the economy,” the company said.

Published on January 31, 2020

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