Diversified conglomerate ITC has reported a 16.3 per cent jump in net profit at Rs 2,385.34 crore for the quarter ended December 2013, against Rs 2,051.85 crore in the year-ago period. Net sales rose 13.1 per cent to Rs 8,623.11 crore.
London-headquartered British American Tobacco (BAT), which holds about 30 per cent stake in ITC, might not increase its equity holding when the Indian government sells its 11.3 per cent stake in the Kolkata-based cigarettes-to-hotels group, currently held
ITC is likely to increase the prices of some of its cigarette brands by up to 15 per cent. While the company is yet to raise the prices officially, it appears dealers and retailers have already been informed of the move.
In the past two months ITC's stock price has corrected by close to 10% and the stock has underperformed the broader market (the Sensex has risen by 6% and the BSE FMCG Index has marginally dropped by 4% in the same period).
ITC reported Adj PAT of Rs21bn on the back of 15.9% EBIT growth in Cigarettes even as Hotels and Paperboard businesses disappointed, resulting in Non‐cigarette business EBIT decline of 5% YoY, mainly led by 58% decline in losses in the FMCG
ITC's Q2FY2014 performance was disappointing in terms of the revenue growth in some of the key businesses (cigarette and agri) moderating the overall top line growth to high single-digits during the quarter.
Diversified conglomerate ITC has reported its second quarter net profit at Rs 2,230 crore as against Rs 1,836 crore in the same period last year, up 21.5 per cent.Gross sales grew almost nine per cent, to Rs 7,776 crore.
The net earnings of Sharekhan’s banking universe are likely to decline by 12% year on year (YoY), largely contributed by the public sector undertaking (PSU) banks which are expected to report a decline of 26% YoY in their net earnings.
It is said that ITC can notch up around 5 per cent of market share for any product it debuts by dint of its distribution. It is present in categories such as personal care and food as are other FMCG behemoths like HUL.