ITC Q3 net up nearly 4% at Rs3.090 cr; revenue rises 15% to Rs11,228 cr

In a filing with the Bombay Stock Exchange (BSE), ITC said profit was largely driven by other income that increased 30 per cent YoY to Rs836.4 crore in Q3.

ITC, which branched out from its cigarette business to packaged food, homecare and personal care products, hotel et al, reported a 15 per cent year-on-year increase in revenue from operations at Rs11,227.66 crore, driven by growth across segments.

ITC said revenue from its cigarette business, which contributed over 40 per cent to total revenue, increased 9.6 per cent to Rs5,074 crore in Q3FY19 with its earnings before interest and tax (EBIT) rising 8.8 per cent YoY but margin contracted to 70.1 per cent against 70.6 per cent in the corresponding period of the previous year.

Overall earnings before interest, tax, depreciation and amortisation (EBITDA) grew 11.2 per cent to Rs4,325.8 crore, but margin dipped to 38.5 per cent against 39.8 per cent in the year-ago quarter.

Other FMCG, ITC’s second biggest segment, recorded a 10.3 per cent growth in revenue at Rs8,274 crore. At operating level, its EBIT grew 9.6 per cent, but margin contracted to 43.9 per cent against 44.2 per cent YoY.

Other FMCG includes packaged foods, apparel, education and stationary products and personal care products.

Hotels business recorded 11.7 per cent growth in fiscal third quarter revenue at Rs452 crore and its EBIT increased 10 per cent but margin dropped 30 bps to 13.3 per cent.

ITC said its agri segment recorded a whopping 25.7 per cent growth in revenue at Rs1,925 crore, but EBIT fell sharply by 14.8 per cent in the quarter ended December 2018.

Paper business also showed an excellent performance during the quarter, growing 20.5 per cent to Rs1,543 crore. Its operational earnings, too, were strong in Q3 as EBIT jumped 23.8 per cent to Rs332 crore and margin improved by 50 bps.