The Kolkata-based company ITC Ltd is hopefully looking to register year-on-year (YoY) increase of 6.36 percent in its annual net profit to Rs 2,839 crore, as reported by a poll of analysts at Reuters. However, revenue surged by 9.86% versus Rs 9,952.19 crore of preceding quarter.
Gross sales value at Rs 17,933.48 crore during the quarter recorded a muted growth of 3.6 per cent because of a decline in agri business revenue, excluding which the growth was 5.7 per cent driven by fast moving consumer goods and hotels.
Net profit rose to Rs 2,933 crore in the four months ended March 31, 2018, from Rs 2,669 crore in the year-ago period.
Also, agri business slumped by 5.74% yoy to Rs 1,808.31 crore and paperboards & packaging business dropped by 5.24% to Rs 1,300.81 crore.
ITC's net sales during the quarter under review stood at Rs 10,705.75 crore.
ITC undertook cost management initiatives across its business verticals, it said. The performance reflects the severe pressure on legal cigarette industry volumes due to a steep escalation of tax incidence under the GST regime even as the illegal trade grows unabated.
Revenue from cigarettes during the March quarter fell by nearly 45 per cent to Rs 4,936.45 crore over Rs 8,954.94 crore in same period of previous fiscal.
On its revenue from hotels business, the company said the growth in segment revenue during the year was subdued at 5.6 per cent reflecting inter alia the overhang of excess room inventory and the impact of highway liquor ban.
The company will be paying a dividend of Rs5.15 per share for the year ended 31 March.
The board of directors of the company on Tuesday re-designated Sanjiv Puri, CEO & Whole time Director, as the Managing Director of the company with effect from May 16, 2018.
For the financial year 2017-18, ITC's consolidated net profit was up 9.68 percent at Rs 11,485.10 crore as against Rs 10,471.26 crore in 2016-17.
Shares of ITC were trading at Rs 287.10 on BSE in the afternoon trade, up 1.88 per cent.