ITC's Q4 net profit jumps to Rs 2670 crore; cigarette business revenue up 8%
FMCG major, ITC Ltd on Friday announced its financial result for the quarter ended on March 31. The company reported a net profit on Rs 2669.47 crore in Q4FY17, a jump of 12% as against Rs 2380.68 crore during the same period last year.
The company's net profit in rose marginally by 0.8% from last quarter.
For the whole financial year. the company's net profit stood at Rs 10,471.26 crore as against Rs 9492.44 crore during the last financial year.
Moreover, the company's Q4 revenue stood at Rs 15,000 crore as against the estimates of Rs 11,850 crore.
ITC's Gross Revenue at Rs. 55001.69 crores grew by 6.6% primarily driven by an 8.0% growth in the non-cigarette FMCG segment, 10.8% growth in Agri Business and 5.1% growth in the Cigarettes segment.
Profit Before Tax registered a growth of 7.4% to Rs. 15502.96 crores while Profit After Tax at Rs. 10200.90 crores increased by 9.4%. Total Comprehensive Income for the year stood at Rs. 10277.90 crores (previous year Rs. 9261.79 crores). Cash flows from Operations aggregated Rs. 15214.98 crores, compared to Rs. 14039.64 crores in the previous year.
During the Q4FY17, Gross Revenue grew by 6.1% to Rs. 14882.75 crores while Profit After Tax stood at Rs. 2669.47 crores representing a growth of 12.1%.
"The modest recovery in growth during the quarter, after severe disruption in operations in Q3, was driven mainly by Agri commodities, Branded Packaged Foods businesses, Personal Care Products Business, which was partially offset by ongoing pipeline calibration in the Education and Stationery Product Business and lower consumer offtake & heavy discounting in Apparel", the company said.
From the cigarettes business, in Q4FY17 the standalone net revenue stood at Rs 8954.94 crore as against Rs 8545.46 crore in the previous quarter and Rs 8287.97 crore in Q4FY17, a rise of 8% on yoy basis.
The company in a statement said, "Cigarettes performance continues to be impacted by severe pressure on legal cigarette industry volumes even as illegal trade grows unabated.
"Over the last 5 years, the incidence of Excise Duty and VAT on cigarettes, at a per unit level, has gone up cumulatively by 131% and 157% respectively. Due to the steep hike in taxation over the past several years, at levels well above the rate of inflation, duty-paid cigarettes have become less affordable in the country, leading to a drop in volumes," the company said.
At 1517 hours the shares of the company were trading at Rs 307.70 per piece, up 2.67% or Rs 8 on BSE.