ITC Posts good Q1 result

ITC is a private sector company. ITC has a market presence in Cigarettes, Hotels, Paperboard's & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

Recently, ITC announced its First Quarter FY16 result, the total revenue declined by 7.14 per cent to Rs 8587.7 crore compared to Rs 9248.29 crore year on year basis. FMCG-Others Segment registers revenue growth of 12.2 per cent amidst subdued demand conditions. As per the company's press release legal cigarette industry volumes remain under severe pressure even as illegal trade grows unabated. The hotels segment registers a healthy revenue growth of 15.7 per cent driven by strong growth in room occupancies and Food & Beverage revenues. Segment Results include the impact of gestation costs of ITC Grand Bharat commissioned in November 2014.

Agribusiness Segment Revenue impacted by lack of trading opportunities in wheat & soya. However, the Segment Profits up 15.5 per cent driven by superior product mix and higher realisations.Paperboards, Paper & Packaging Segment impacted by the continuing slowdown in the FMCG and Cigarette industry, reduction of import duty under various regional Free Trade Agreements.

Company's total expenses reduced by 12 per cent to Rs 5460 crore in Q1FY16 as against Rs 6202 crore in Q4FY15. The EBITDA increased by 3.3 per cent to Rs 3386 crore as against Rs 3278 crore, EBITDA margin expanded by 399 basis points to 39.43 per cent year on year basis. The other income of the company increased by 34.3 per cent to Rs 315 crore, finance cost reduced by 31 per cent.

The Company’s performance during the quarter was subdued reflecting the unprecedented pressure on legal cigarette industry volumes, sluggish demand conditions prevailing in the FMCG industry and lack of trading opportunities in wheat and soya. The Net Profit stood at Rs. 2265.44 crores in Q1FY16 registered a growth of 3.6 per cent compared to Rs 2186.39 crore in Q4FY15.

After the result announcement, today the company is trading around 1 per cent higher at Rs 319.