ITC Q2 net increases nearly 6% at Rs 2,640 cr

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Country’s biggest cigarette maker ITC Ltd reported almost 6% rise in net profit at Rs 2,640 cr for the September quarter as against Rs 2,500 crore in year-ago period, helped by lower costs.

Total income during the quarter under review was Rs 10,258.13 crore as against Rs 14,091.96 crore in the year-ago period.

The company said total income from operations during the quarter is not comparable with the previous periods due to introduction of GST from July 1.

Consequent on introduction of GST, central excise, VAT etc have been replaced by the one unified tax. In accordance with Indian accounting standards 18 and schedule III of the Companies Act, 2013, GST, GST compensation cess and VAT etc are not included in the total income from operations, it added.
Total expenses during the period stood at Rs 6,313.84 crore compared to Rs 10,265.74 crore a year earlier.

Revenue from the total FMCG business, including cigarettes and others, during the quarter read Rs 7,358.32 crore as against Rs 11,200.13 crore a year before.

Hotel business contributed Rs 300.18 crore during the period compared to the earlier Rs 297.34 crore. Agri business revenue stood at Rs 1,967.98 crore as against Rs 1,880.06 crore in the same period last fiscal.

Paperboards, paper and packaging business revenue during the quarter was Rs 1,309.41 crore against Rs 1,331.41 crore in the year ago period.

The company, which also makes Sunfeast biscuits and Classmate stationery, said its expenses for the quarter fell about 39% to Rs 6,314 crore.