ITC 1Q net profit marginally up at Rs2,265 crore

Diversified consumer goods major ITC Ltd has reported a net profit at Rs2,265 crore for the quarter ended 30 June 2015, a near four per cent increase from the Rs2,186 crore reported in the year-ago period.

However, ITC saw its total income from operations during the April-June 2015 quarter drop more than seven per cent to Rs8,588 crore. Total income in the corresponding period last fiscal stood at Rs9,248 crore.

''The company's performance during the quarter was subdued reflecting the unprecedented pressure on legal cigarette industry volumes, sluggish demand conditions prevailing in the FMCG industry and lack of trading opportunities in wheat and soya,'' ITC said in a release.

Despite tax woes, cigarettes remained a contributor towards ITC's revenues and pre-tax profits. While the segment reported a profit of Rs2,781 crore, revenues from it during the April-June 2015 quarter stood at Rs4,150 crore.

Other divisions like agri business, paper boards, paper and packaging segments reported profits of Rs234 crore and Rs254 crore, respectively.

However, the FMCG category (that include branded packaged foods business, apparel, education and stationery products, personal care and safety matches and agarbattis) continued to be in the red, reporting a loss of nearly Rs8 crore.

''The segment results of FMCG others are after considering significant business development, brand-building and gestation costs of branded packaged foods business and personal care business,'' ITC said in its filing with the BSE.

The hotel business also reported a loss of over Rs7 crore.

The ITC stock was trading at Rs311, up 2.32 per cent on the BSE at around 1.20 pm.