Diversified conglomerate ITC came out with a mixed bag of earnings, posting a 9.84% rise in its standalone net profit at Rs 2,932.71 crore during the quarter ended March 2018, beating most analyst estimates.
Revenue from operations fell 28 per cent to Rs 10,813 crore, while excise duty paid was down about 94 per cent. However, hotel business saw uptick of 5.56% to Rs 408 crore this quarter.
Revenue from the sale of cigarettes dropped by almost 45 per cent to Rs 4,936 crore (Rs.8,955 crore).
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.More news: Mother charged with 9 felony counts in child abuse case
For the fiscal ended March 31, 2018, net profit was Rs 11,485.10 crore against Rs 10,471.26 crore a year ago. 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.
ITC said it was making progress on the construction of hotels in Hyderabad, Calcutta and Ahmedabad and WelcomHotels in Guntur and Bhubaneshwar.
Revenue from FMCG-Others segment was at Rs 3,051.82 crore during January-March quarter.
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.More news: Karolina Pliskova Hits Umpire's Chair With Racket After Loss
The company on Wednesday said the agri business was affected by factors such as adverse quality of Andhra Pradesh leaf tobacco crop, limited trading in commodities such as wheat, soya and coffee and high base effect of imported wheat trading.
The board has recommended a dividend of Rs 5.15 per share.
On a comparable basis, gross sales value (net of rebates/discounts) stood at Rs 67,081.92 crore in FY18, representing a growth of 4.5 per cent driven mainly by the branded packaged foods, personal care and the education and stationery products businesses offset by the decline in agri business revenue, the company said.
Shares of ITC were trading at Rs 287.10 on BSE in the afternoon trade, up 1.88 per cent.More news: The Crew 2 Beta Dates Announced For PS4, Xbox One, And PC