ITC posts Rs1,070 crore net profit for quarter ended June

Kolkata-based tobacco-to-hotels major ITC yesterday posted a 21.8-per cent year-on-year growth in net profit for the first-quarter (Q1) ended 30June, 2010, at Rs1,070.3 crore as against Rs878.7 crore in the year-ago period.

Net sales during the period under review, however, were up 16.1 per cent y-o-y at Rs 4,816.6 crore against Rs 4,147.6 crore in the corresponding period of the previous year, on robust performance of the company's foods, personal care, agri and cigarette businesses.

According to the company's statement issued after the board meeting, ITC said its pre-tax profits for the said period were up 19.2 per cent at Rs1,570.1 crore, operating profits from non-cigarette businesses registered an increase of 38 per cent at Rs 265 crore in the quarter under review as against Rs192 crore in the earlier corresponding period. The company reported earnings per share for the quarter at Rs2.80.

Though, severe taxation and regulatory environment for cigarettes continues to heavily weigh the business down innovation and consumer centricity has enabled the company to deliver superior value with its brand portfolio of well-crafted blends, modern packaging styles and use of state-of-the-art manufacturing technology.

''Initiatives across brand portfolio in terms of modernisation of packs and introduction of new brands and variants such as 'Lucky Strike', 'Classic Menthol Rush', 'Gold Flake SLK' during the quarter have bolstered the company's market standing in premium categories and improved overall market share. The business is also test marketing its products in the new 'micro filter' segment (length not exceeding 60 mm),'' the company said.

The company's paperboards, specialty papers and packaging division outshone other businesses posting an impressive performance during the quarter, with segment revenue registering 13 per cent growth.