ITC net profit rises 3.85% in Q3 driven mainly by FMCG, agri and packaging biz

Excerpt: ITC Ltd reported a 3.84 % (y-o-y) growth in its standalone net profit to Rs 3,209.07 crore for Q3 ending on December 31, 2018 as compared to Rs 3,090.20 crore in the corresponding period last year.

FMCG major ITC Ltd reported a 3.84 per cent year-on-year (y-o-y) growth in its standalone net profit to Rs 3,209.07 crore for the third quarter ending on December 31, 2018 as compared to Rs 3,090.20 crore in the corresponding period last year. Driven mainly by FMCG, agri business and paperboards, paper and packaging, its gross revenue for the quarter soared to Rs 11,340.15 crore, up by 15.1 per cent from Rs 9,852.74 crore in the corresponding period last year.

Gross revenue from sales was up 15.09 per cent to Rs 11,340.15 crore as against Rs 9,852.74 crore in the year-ago period.

"Gross revenue for the quarter stood at Rs 11,340.15 crore, representing a growth of 15.1 per cent driven mainly by FMCG-others, agri business and paperboards, paper and packaging segment," said ITC in a statement.

In the third quarter of the previous fiscal, ITC had reported an exceptional income of Rs 412.90 crore.

During the quarter, revenue from total FMCG business was up 10.31 per cent to Rs 8,274.36 crore as against Rs 7,500.97 crore in the year-ago period.

FMCG-others segment was also up 11.46 per cent to Rs 3,200.98 crore in October-December 2018 as against Rs 2,871.78 crore in the year-ago period.

This was "led by atta, snacks, premium cream biscuits and noodles in the branded packaged foods business, fragrance products and liquids (handwash and bodywash) in personal care products business and Classmate notebooks in education and stationery products business," said ITC.

FMCG-others segment of ITC consists of branded packaged foods as staples, snacks, meals, dairy and beverages, confections, apparel, education and stationery products, personal care products, safety matches and incense sticks.

Revenue from agribusiness segment was also up 25.72 per cent to Rs 1,924.61 crore as against Rs 1,530.86 crore in the December quarter of the previous fiscal.

"Market opportunities in wheat and oilseeds along with enhanced focus on value-added portfolio, especially coffee, spices and aqua, resulted in robust growth in revenue during the quarter," said ITC.

Paperboards, paper and packaging segment was at Rs 1,542.51 crore, up 20.54 per cent from Rs 1,279.60 crore earlier. This was "driven by strong demand and capacity augmentation in Value Added Paperboard and D cor segments," it added. Source: Millennium Post