FMCG major ITC posted a decline of Rs 33 crore in the profit after tax (PAT) for the first quarter ended June 30, 2008, at Rs 749 crore, down from Rs 782 crore in first quarter of FY07.
ITC had not reported a decline in quarterly PAT in over a decade, according to data available with Business Standard. Earnings per share was lower by 9 paise at Rs 1.99.ITC’s net turnover grew 18.4 per cent to touch Rs 3900 crore, driven by the non-cigarette businesses.
The company’s non-cigarette business grew by 29 per cent due to the continued scale up of the new FMCG businesses, higher agri business revenues and a healthy performance by the hotels and paperboards and packaging businesses.
However, the unprecedented increase in excise duties on non-filter cigarettes in the Union Budget 2008, steep increases in commodity prices and store rentals, the launch costs of the additions to the new personalcare portfolio and the continuing brand building costs in the foods business combined to exert intense pressure on profitability during the quarter, the company said in a release.