ITC Limited, has posted a 23% growth in net profits on the back of a sharp rise in operating margins and a decline in interest expenditure. ITC operates in five principal areas of tobacco and cigarettes (market share 66%), hotels, paper and packaging, and international trading. It is the industry leader in its core business of cigarette manufacturing and tobacco leaf procurement, processing and exports in India. The product portfolio includes popular brands like Wills, Gold Flake, India Kings and Classic.
(Rs m) | 3QFY2000 | 3QFY1999 | Change |
Net Sales | 9,608.0 | 8,376.0 | 14.7% |
Ther Income | 218.0 | 232.0 | |
Interest | 266.0 | 391.0 | -32.0% |
Depreciation | 314.0 | 261.0 | 20.3% |
Profit before Tax | 2,834.0 | 2,080.0 | 36.3% |
Tax | 1,162.0 | 723.0 | 60.7% |
Profit after Tax/(Loss) | 1,672.0 | 1,357.0 | 23.2% |
Net profit margin (%) | 17.4% | 16.2% |
ITC has posted a rise in net sales mainly due to a 2.5% rise in sales volumes. The other factors contributing to a healthy growth in operating profits were cost control, improved productivity and improved product mix. The company is expected to benefit further as the economy gains momentum and income levels rise.
The quality of earnings has improved and this is evident from the rise in profits despite a decline in other income. The company's profitability has however been suppressed on account of higher provisions for taxes in view of the pending legislation in several high courts.
For the quarter ended December 2020, ITC has posted a net profit of Rs 37 bn (down 11.6% YoY). Sales on the other hand came in at Rs 125 bn (up 4.0% YoY). Read on for a complete analysis of ITC's quarterly results.
Here's an analysis of the annual report of ITC for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of ITC. Also includes updates on the valuation of ITC.
For the quarter ended September 2020, ITC has posted a net profit of Rs 32 bn (down 19.7% YoY). Sales on the other hand came in at Rs 120 bn (up 0.9% YoY). Read on for a complete analysis of ITC's quarterly results.
Does the company with one of the fastest-growing QSR chains in India have sound prospects?
Here's an analysis of the annual report of ITC for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of ITC. Also includes updates on the valuation of ITC.
More Views on NewsAjit Dayal on how India's vaccine strategy will impact the markets.
Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.
This could take India to the position of 3rd largest economy.
In this video, I'll you what I think is the real reason behind yesterday's market crash.
This ignored sector could deliver big short-term profits.
More
Equitymaster requests your view! Post a comment on "ITC posts 23% growth in net". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!