ITC

The company posted a good set of numbers for Q4FY13, beating most of the estimates. It ended the quarter with a net profit at Rs.1928 crore, up 19% (YoY) on a similar 19% jump in revenue at Rs.8180 crore. The numbers were driven mainly by growth in FMCG and agri business. In fact the non-cigarette FMCG broke even this quarter, with a maiden profit during Q4. The segment showed a 26% growth in revenue. Agri business showed a 14% growth in profit,  driven by better realisations and higher volumes. Paperboards, paper & packaging  segment revenue rose 9%, due to higher volumes and product mix enrichment. Profitability on the other hand was impacted due to steep increase in wood, coal and chemical costs. In March 2013, the company commissioned a new state-of-the-art Paper Machine commissioned at Bhadrachalam.  Its hotels segment showed a 10% rise in revenue but EBIT halved to Rs.40 crore and this was a reflection of the overall hospitality sector which is suffering from sluggish growth.  Its main fray business – cigarette, showed a 11% growth in revenue and EBIT was up 20% and it remains the biggest contributor to the topline and bottomline.

The company has lined up a capex of Rs.1000 crore, over the next 2-3 years. It has got possession of 39 acres of land at Panchla in Howrah district where it plans to build an integrated food and consumer goods facility. It has already got 18 acres at Uluberia in Howrah district where a similar integrated facility is likely to be operational in the next two years. FMCG will see a bigger push from the company in the coming few months.