KOLKATA: Cigarettes-to-hotels conglomerate ITC LtdBSE 0.67 % said third-quarter net profit jumped 20.6 per cent year-on-year to Rs 2,051.85 crore on the back of strong growth in its FMCG and agricultural businesses.
ITC said on Friday net sales for the quarter-ended December rose 23.1 per cent from a year ago to Rs 7,627.07 crore. Net sales from its FMCG business grew 30 per cent while revenue from its agri-business was up 43 per cent.
Investors cheered the news, pushing ITC's shares up to Rs 289.7 in intra-day trade on the Bombay Stock Exchange on Friday. The scrip closed 0.67 per cent higher at Rs 287.05.
"The FMCG business and agribusiness is going to drive ITC's growth next quarter as well, since we do not expect any significant improvement in the cigarette business volume or the hotel business," said Kaustubh Pawaskar, research analyst
Revenue of the company's flagship cigarette business grew by more than 13 per cent to Rs 3,657.36 crore, despite a steep hike in taxation, which has led to 10-17 per cent increase in cigarette prices over the last two quarters.
In volume terms, ITC's cigarette business grew by 1.25 per cent, according to Religare Institutional Research.
Sharekhan's Pawaskar attributed the growth in revenue from the cigarette segment to the price hike and ruled out any significant jump in volumes in the next quarter.
ITC said its sub-65 mm cigarettes, launched to fight illegal trade and offer an entry-level pricing, has received favorable response and the company is now planning a nationwide rollout.
Net sales of the company's noncigarette FMCG business, which comprises packaged food and personal-care products, grew 30 per cent to Rs 1,782.70 crore. The segment reduced losses by 50 per cent to Rs 23.98 crore during the quarter.
ITC said sales growth of its packaged food business was led by its biscuit brand Sunfeast, Sunfeast Yippee! noodles and Bingo! range of snacks.
In personal care, the company strengthened its presence in soaps with a premium range and also launched newer products in the deodorants, body lotion, hand moisturiser and skin toner segments.
However, ITC's hotel business failed to make a significant recovery during the quarter. The company attributed this to the continuing weakness in the domestic and global economy and a significant addition of rooms in several markets.
Sales in this segment grew 11 per cent to Rs 309.46 crore, while profitability was down 45 per cent to Rs 55.49 crore.
ITC said on Friday net sales for the quarter-ended December rose 23.1 per cent from a year ago to Rs 7,627.07 crore. Net sales from its FMCG business grew 30 per cent while revenue from its agri-business was up 43 per cent.
Investors cheered the news, pushing ITC's shares up to Rs 289.7 in intra-day trade on the Bombay Stock Exchange on Friday. The scrip closed 0.67 per cent higher at Rs 287.05.
"The FMCG business and agribusiness is going to drive ITC's growth next quarter as well, since we do not expect any significant improvement in the cigarette business volume or the hotel business," said Kaustubh Pawaskar, research analyst
Revenue of the company's flagship cigarette business grew by more than 13 per cent to Rs 3,657.36 crore, despite a steep hike in taxation, which has led to 10-17 per cent increase in cigarette prices over the last two quarters.
In volume terms, ITC's cigarette business grew by 1.25 per cent, according to Religare Institutional Research.
Sharekhan's Pawaskar attributed the growth in revenue from the cigarette segment to the price hike and ruled out any significant jump in volumes in the next quarter.
ITC said its sub-65 mm cigarettes, launched to fight illegal trade and offer an entry-level pricing, has received favorable response and the company is now planning a nationwide rollout.
Net sales of the company's noncigarette FMCG business, which comprises packaged food and personal-care products, grew 30 per cent to Rs 1,782.70 crore. The segment reduced losses by 50 per cent to Rs 23.98 crore during the quarter.
ITC said sales growth of its packaged food business was led by its biscuit brand Sunfeast, Sunfeast Yippee! noodles and Bingo! range of snacks.
In personal care, the company strengthened its presence in soaps with a premium range and also launched newer products in the deodorants, body lotion, hand moisturiser and skin toner segments.
However, ITC's hotel business failed to make a significant recovery during the quarter. The company attributed this to the continuing weakness in the domestic and global economy and a significant addition of rooms in several markets.
Sales in this segment grew 11 per cent to Rs 309.46 crore, while profitability was down 45 per cent to Rs 55.49 crore.
