ITC’s second quarter profit up 13%

Tobacco, hotels and FMCG major ITC Ltd on 26 October beat market forecasts with a 13% rise in quarterly net profit, helped by strong growth in its packaged foods and hotels businesses.

ITC, in which British American Tobacco Plc has a 31.7% stake, also has interests in retail and information technology, and recently launched personal care products.

The Kolkata-based company said net profit rose to Rs771 crore in the fiscal second quarter to end-September from Rs680 crore a year earlier.

A value-added tax of 12.5% from April has slowed sales of cigarettes, which make up more than half its revenues, and ITC is also investing in increasing its paperboard capacity and expanding its agri-business network in rural areas.

ITC shares gained 23% during the quarter, beating an 18% gain for Sensex