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ITC Q3 Net Profit soars 21 pc

Posted on Jan 18, 04:42PM | IBNS

Beating expectations, ITC Ltd, India's largest cigarette producer, registered a nearly 21 per cent rise in quarterly net profit, the company said on Friday.

Its Net Net Revenue rose by 23.1pc while the Profit from Operations increased by 20.1pc .

The profit before tax was rose by 19.4pc while the Net Profit increased by 20.6pc , according to the financial results of the company.

Its Non-Cigarette FMCG segment registered a robust revenue growth of 30.1pc .

The Company posted strong topline and earnings growth for the Quarter ended 31st Dec 2012.

Gross Revenue/Income from Operations at Rs 10824.67 crores grew by 22.9pc driven primarily by Branded Packaged Foods, Personal Care, Agri Business and Cigarettes.

Profit from Operations grew by 20.1pc to Rs 2652.54 crores while Profit Before Tax and Net Profit at Rs 2957.19 crores and Rs2051.85 crores registered a growth of 19.4pc and 20.6pc respectively. Earnings Per Share for the quarter stood at Rs 2.61.

The company said its stellar performance is particularly remarkable when viewed against the backdrop of the challenging business environment in which it was achieved, namely, a slowdown in economic growth, sustained high inflation and impact of the steep hike in taxes on cigarettes during the year.

The company said the cigarette industry in India continues to be impacted by a discriminatory taxation and regulatory policy framework.

On the hotel front, ITC Grand Chola, which commenced operations in September 2012, received encouraging response in its first quarter post launch.

The hotel has achieved the distinction of being the world's largest 'Leadership in Energy and Environmental Design' (LEED) Platinum rated hotel in the New Construction category bolstering the unique positioning of ITC Hotels as the greenest luxury hotel chain in the world.

Construction activity of the new properties at Kolkata, Bengaluru and at the Classic Golf Resort near Gurgaon is progressing as per plans, the company said.