ITC Q3 net profit rises 5.7% to Rs2,647 cr on higher cigarette revenues

ITC Ltd reported an over 5.7 per cent year-on-year increase in its fiscal third quarter net profit at Rs2,647 crore, against the Rs2,504 net profit for the quarter ended 31 December 2015.

Total income from operations rose by over 4.6 per cent on an year-on-year basis to Rs13,570 crore, during the quarter ended 31 December 2016 on rising revenue and profits from cigarettes.

Cigarettes contributed to 66 per of revenue from operations (Rs8,288 crore out of Rs13,471 crore), while its contribution to profit before tax stood at 76 per cent (Rs3,034 crore out of Rs3,954 crore).

''Legal cigarette industry volumes remain under severe pressure even as illegal trade grows unabated,'' the company said in a release.

ITC said revenue from FMCG-others segment saw a 3.4 per cent year-on-year growth to Rs2,569 crore (Rs2,485 crore).

The segment include branded packaged foods like staples, snacks and meals, diary and beverages and confection, apparel, education and stationery, personal care and safety matches and incense sticks.

However, the sector reported a loss of Rs20 crore in the quarter, partly due to the cash constraints brought about by the demonetisation exercise, sources said, adding that the segment had reported a profit before tax of Rs19 crore during the year-ago period.

''FMCG-Others Segment Revenue (was) up amidst lower consumer off-take and reduction of trade pipelines in the wake of cash crunch during the quarter,'' ITC's release stated.

According to the company, the FMCG Others segment results reflect the impact of disruption in sales momentum due to adverse liquidity conditions in trade channel, sharp escalation in input cost, gestation cost of new categories and sustained investment in brand building.

Meanwhile, Sanjiv Puri has taken over as the chief executive officer of the company after long-term CEO YC Deveshwar decided to step down.

Puri, currently the chief operating officer of the company, will take charge as CEO from 5 February.

The company also split the executive chairman's post between the chairman and CEO.

Deveshwar, however, will continue to be the non-executive chairman of ITC.