ITC profit rises 18.7% in Q4

Paperboards, packaging, hotels and FMCG-other do well

ITC Ltd. closed the fourth quarter with a 18.7 % rise in its net profit to to ₹3481.9 crores on the back of good performance by paperboards and packaging, hotels and FMCG-other segments.

The results were approved by the board on Saturday. The board recommended a dividend of ₹5.75 per ordinary share of ₹1 for the year.

ITC’s profit for 2018-19 rose by 11.1% to touch ₹12,464.3 crore. It was driven by a robust growth in hotels, FMCG-others (excluding lifestyle retailing) and the paper segment. Agri business revenues were impacted by subdued demand for leaf tobacco in international markets and leaf cost escalation.

The company said that after continued sluggishness over the last two years — during demonetisation and GST roll out — there was anticipation of a significant pick up in FMCG. However this was muted after a pick in the first half of the year due to tight liquidity conditions and sluggish rural demand.

An ITC press statement said that FMCG-others (the non-cigarette) business grew ahead of industry with a segment revenue of ₹12,505.3 crore during the year against ₹11,328 crore a year ago. This business comprises foods, personal care and education and stationery business.

The statement also mentioned the ongoing recast of the lifestyle retailing business where the John Players brand had been sold off. After sluggish sales in 2017-18 due to GST transition and ban on sale of liquor by outlets along highways, the paperboards, paper and packaging recovered with improved top-line and bottomline during the fourth quarter as also the year. ITC closed lower during the day with a drop of 2.6% on the BSE (₹289.8) and 3% on NSE at ₹288.8 per share

Source: Read Full Article