ITCBSE -2.78 % Ltd pronounced 5.7% jump in web profit at Rs 2,646.seventy three crore for the third quarter ending December 31, 2016, while complete income from operations grew with the aid of 4.7% at Rs 13,569.ninety seven crore. The conglomerate attributed the bleak efficiency to persisted power on the cigarette trade and the demonetisation power, which impacted sales of biscuits, snacks, noodles, private care products and attire.
the corporate's board approved the appointment of Sanjiv Puri as the following chief govt officer of the company taking full charge of the operations from February 5, 2017, and present chairman and CEO YC Deveshwar will develop into non-govt director and chairman, mentoring Puri thereafter.
The board has additionally sought to enlarge the company's memorandum of association to foray into the healthcare industry, about which the company refused to share additional details.
The Kolkata-based totally agency, in its cash unlock, said the operating setting used to be extremely challenging all through the quarter. FMCG sales had been adversely impacted as a result of lower shopper offtake and reduction in alternate pipelines, it stated.
the company stated that to mitigate the impact of demonetisation, it had implemented a couple of initiatives, akin to increasing the provider frequency of grocery retailers, improving presence in modern exchange shops, and increasing brief credit score.
"These initiatives, coupled with a progressive easing of the liquidity state of affairs, led to vast restoration of gross sales momentum in opposition to the tip of the quarter," the corporate said.
The ITC inventory suffered on the bourses declining through 2.78% to shut at Rs 257.5 on the Bombay inventory change on Friday. the company's flagship cigarette industry reported a earnings increase of two.2% at Rs eight,287.ninety seven, which analysts attributed to a cost hike all through the quarter on make a selection brands.
trade profitability used to be up via 1.6% at Rs 3,033.69 crore. The cigarette trade was once subdued as a result of tight liquidity conditions prevailing available in the market and persevered regulatory and taxation pressures, it said. The non-cigarette FMCG industry was once also hit onerous right through the last quarter, with sales growing by means of three.four% at Rs 2,569.26 crore, while the section additionally said a lack of Rs 19.66 crore as compared to a profit in the same duration ultimate yr.
ITC attributed the losses to a disruption in gross sales, sharp raise in costs of uncooked subject material, corresponding to wheat, maida, sugar and cashew, an early 'finish of season sales' and heavy discounting in the lifestyle retailing business, apart from the gestation price of new merchandise. The usa's 2d largest hotel chain stated 7.three% soar in hospitality industry earnings at Rs 370.fifty one crore throughout the quarter, on the back of upper average room price and growth in meals and beverage income.
ITC's paperboards, paper and packaging phase continued to be impacted by using slow demand stipulations prevailing within the FMCG and cigarette industries, and low cost imports from China, which kept the income increase flat.
The agri industry, however, suggested 12.9% growth in earnings at `1,671.92 crore pushed by using buying and selling opportunities within the home wheat market and external sales of leaf tobacco, which managed to offset the decrease interior demand.
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