The FMCG company has posted a good performance for Q2FY10 and what really helped was the improvement posted by cigarettes, FMCG Others, Agri and Paper & Packaging businesses. The hotel segment, as expected showed a dismal performance. De-growth in occupancies and average room rates persisted during the quarter and but for this, the growth would have been much better.
For the quarter, FMCG segment on a YoY showed the best growth in the topline at 69%, agri business grew 19%, paper business grew 13% but hotel showed a fall of 24%. QoQ, the growth in hotel is almost flat but at least the fall has stopped, heralding improvement in second half.
Net revenue on a YoY rose 12% and net profit surged 26%. But the real news to cheer was the margins. OPM rose at 38.17%, up from 36% sequentially and 34% on a YoY. NPM was at 23.24%, up 21% QoQ and 20.78% On YoY.
What comes as a surprise every time is that despite all the odds, the cigarette business has always managed to remain its biggest earner. Despite ban on smoking in public places and the persistent hike in duties, people continue to smoke and ITC earns.
The company is socially very active and has always been taking initiatives to help achieve sustainable growth. Its total investment in wind energy has been pegged at Rs.250 crore of which it has already spent Rs.100 crore in Tamil Nadu to meet the requirements of its Packaging business in Chennai. Its investment in wind energy is eligible for Carbon Credits under the Clean Development Mechanism of the Kyoto Protocol, resulting in substantial cost savings. Stay invested.
For the quarter, FMCG segment on a YoY showed the best growth in the topline at 69%, agri business grew 19%, paper business grew 13% but hotel showed a fall of 24%. QoQ, the growth in hotel is almost flat but at least the fall has stopped, heralding improvement in second half.
Net revenue on a YoY rose 12% and net profit surged 26%. But the real news to cheer was the margins. OPM rose at 38.17%, up from 36% sequentially and 34% on a YoY. NPM was at 23.24%, up 21% QoQ and 20.78% On YoY.
What comes as a surprise every time is that despite all the odds, the cigarette business has always managed to remain its biggest earner. Despite ban on smoking in public places and the persistent hike in duties, people continue to smoke and ITC earns.
The company is socially very active and has always been taking initiatives to help achieve sustainable growth. Its total investment in wind energy has been pegged at Rs.250 crore of which it has already spent Rs.100 crore in Tamil Nadu to meet the requirements of its Packaging business in Chennai. Its investment in wind energy is eligible for Carbon Credits under the Clean Development Mechanism of the Kyoto Protocol, resulting in substantial cost savings. Stay invested.
Source: Internet (www.premiuminvestments.in by S P Tulsian)
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