ITC Q4 net profit up 3.65% at Rs 2,361.18 crore
For the quarter ended March 31, ITC earned Rs 2,361 crore ($371.6 million), while analysts were expecting the company to earn Rs 2,519 crore.
By ET Bureau | Updated:
KOLKATA: ITC’s Q4 performance missed market expectations for the second consecutive quarter as the impact of higher taxes on cigarettes announced in the budget continued to hurt its flagship business, weighing on profitability and sales growth.
Net profit increased 3.6% toRs 2,361.18 crore in the three months ended March 31 from a year earlier, the Kolkata-based company said on Friday. Analysts had expected earnings ofRs 2,500 crore to Rs 2,600 crore. Net sales rose 0.5% to Rs 9,188.25 crore.
ITC attributed the muted performance to the steep increase in cigarette taxation, which impacted sales volumes, weak consumer demand and lack of trading opportunities in agri-commodities.
Analysts estimate ITC’s cigarette sales volumes fell more than 12% from a year earlier as prices were increased an average of 15% during the quarter.
Net profit increased 3.6% toRs 2,361.18 crore in the three months ended March 31 from a year earlier, the Kolkata-based company said on Friday. Analysts had expected earnings ofRs 2,500 crore to Rs 2,600 crore. Net sales rose 0.5% to Rs 9,188.25 crore.
ITC attributed the muted performance to the steep increase in cigarette taxation, which impacted sales volumes, weak consumer demand and lack of trading opportunities in agri-commodities.
Analysts estimate ITC’s cigarette sales volumes fell more than 12% from a year earlier as prices were increased an average of 15% during the quarter.
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