Diversified conglomerate ITC on Wednesday reported a 10.47 per cent rise in its net profit at Rs. 2,635 crore for the third quarter ended December 31, 2014.
The Kolkata-headquartered firm had posted a profit of Rs. 2,385.34 crore in the corresponding quarter a year earlier.
Net sales increased by marginal 2.05 per cent to Rs. 8,800.22 crore as against Rs. 8,623.11 crore in the same period last year, ITC said in a BSE filing.
The fall in cigarette volumes led to a sharp selloff in ITC shares. The stock fell as much as 4.5 per cent.
However, ITC reported 125 basis points increase in its operating margin in the reporting period. ITC’s operating margin came in at 36.65 per cent against 35.4 per cent in the same quarter last fiscal.
Earnings from the company’s FMCG business, including cigarettes, increased by 4.23 per cent to Rs. 6,456.06 crore, while that from the non-FMCG business section grew by 0.31 per cent to Rs. 9,582.95 crore.
Non-cigarette FMCG revenue of ITC grew 11.35 per cent y-o-y to Rs. 2,314 crore, while its agri and paper packaging business witnessed 8 per cent y-o-y decline in revenue to Rs. 2,797 crore against Rs. 3,044 crore in last fiscal.
Hotel business of ITC saw 5 per cent jump in revenue to Rs 330.26 crore.