ITC Ltd has logged an 18 per cent growth in net profit at Rs 170 crore between April to June 1998, the first quarter of the financial year 1998-99. A company release says that in assessing ITC's results, the interest impact on the outlay of Rs 1,200 crore on past issues (Rs 800 crore for the disengagement from Classic Finance and Rs 350 crore excise pre-deposit) in the two preceding financial years `needs to be recognised'.
Foreign exchange earnings at Rs 183 crore grew by 28 per cent over the same period last year.
Gross income grew by 15.66 per cent to Rs 1,960.21 crore. Net sales turnover grew by 21 per cent to Rs 915.45 crore. Total expenditure grew by 26 per cent to Rs 629.98 crore, while gross profit went up by around 15 per cent to Rs 273.40 crore. Profit before tax went up by 15 per cent to Rs 250.92 crore. ITC had achieved an unprecedented 52 per cent growth in profits in 1997-98.
The first quarter results were taken on record at a board meeting held in Calcutta on Friday. During the first quarter of this year, ITC's claim of $12.19 million in a suit against business partners Suresh and Devang Chitalia has been upheld by the district judge of the New Jersey District court of the US and the entire Chitalia counterclaim of $55 million stands dismissed. The district judge has also awarded costs to ITC to penalise the Chitalias for their abuse of the discovery process in the US court.
The company has received the final show cause notice from the enforcement directorate during the first quarter for alleged contravention of certain provisions of the Foreign Exchange Regulation Act, 1973. The ITC counter witnessed hectic trading at the Calcutta Stock Exchange. It opened at Rs 635, and after touching an intra-day high of Rs 648, the ITC stock dipped to a low of Rs 625.10 and finally closed at around Rs 635.70 at the local bourse.
However, a section of brokers feel that had the growth in net profit been in excess of 20 per cent in the first quarter, the stock would have crossed the Rs 650 mark in trading session. "The nearly 18 per cent growth in net profit was not up to market expectations," he added.
