The Hindu : Business : ITC turns in better hotel, agri business results

Online edition of India's National Newspaper
Saturday, Jan 22, 2005

Business

Business

ITC turns in better hotel, agri business results

By Our Special Correspondent

CHENNAI, JAN. 21. Cigarette major ITC closed the third quarter with better results in its hotel and agri business segments with doubling of profits in hotels and a turnaround in agribusiness.

The profit before tax on its main business area — cigarettes — too increased to Rs. 560.90 crores from Rs. 510.90 crores in the comparable period in the previous year. Its post tax profit stood at Rs. 448.90 crores against Rs. 380.70 crores.

A company release said that the cigarette industry continued to operate in a challenging environment in the wake of the prohibitory orders. Referring to hotels business the release said that segment revenues clocked a 36 per cent growth on the back of improved room realisations and better occupancies. Mumbai ITC Grand Central the company's second hotel in Mumbai was commercially launched this month. Sales of value added products of paperboards segment increased by 29 per cent. In agribusiness the e-choupal network has been ramped up to 5,060 installations the release said.

After a Rs. 18.20 crore expense on interest (compared to Rs. 7.20 crores in 2003-04), the net profit rose by Rs. 68.20 crores to touch Rs. 448.90 crores. The company said that the above results do not take into account the effect of the Supreme Court judgement on luxury tax. The company was now awaiting the judgment copy.

With a net income of Rs. 1,846.40 crores (Rs. 1,665.20 crores) in the third quarter, the multinational's nine month results showed a Rs. 729.70 crore jump in net income to Rs. 5,486 crores. The net profit increased to Rs. 1,396.60 crores from Rs. 1,205.80 crores.

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