By IANS
Kolkata : ITC Ltd, India’s leading tobacco firm, registered 13 percent increase in its quarterly net profit, driven by growth of the company’s food and hotel business.
The company’s net turnover for the second quarter (July-Sep) for financial year 2007-08 reflected 14.2 percent growth at Rs.32.73 billion, driven primarily by food, lifestyle retailing and stationary businesses. The non-cigarette business grew by 17 percent.
ITC’s branded packaged food business continued to expand rapidly with sales growing 58 percent over the same period last year. The ‘Bingo!’ range of snacks continued its strong growth momentum with wider distribution across targeted markets.
The company’s revenue from hotel business also rose by 12 percent compared with the corresponding period last year.
Its net profit rose to Rs.7.71 billion in the second quarter from 6.8 billion in the same period last year. Net sales also rose by 13 percent to 32.73 billion rupees.
The company’s consumer goods business, which includes ready-to-eat foods, biscuits and snacks, grew 10 percent from last year.
Cigarettes make up for more than half its revenue, but sales have slowed after a value-added tax of 12.5 percent was imposed in April.
The company said it is also investing to increase its paperboard capacity and expand its agri-business network.
The company also has interest in retail and IT, and recently launched personal-care products.