ITC Ltd.'s quarterly profit beat estimates, aided by sustained growth in its consumer goods business even as the economic slowdown deepened.
Net profit rose 29.1 percent year-on-year to Rs 4,141.9 crore in the quarter ended December, the cigarette-to-hotels conglomerate said in an exchange filing. That compares with the Rs 3,687.6-crore consensus estimate of analysts tracked by Bloomberg.
- Revenue rose 5.1 percent over last year to Rs 12,012 crore, largely in-line with the Rs 12,079-crore estimate.
- Operating profit rose 6.6 percent to Rs 4,611.6 crore.
- Margin widened 60 basis points to 38.4 percent.
Domestic demand for India's fast-moving consumer goods makers has slowed in the past year as wages stagnated and rural incomes fell, dragging the nation's GDP growth to the lowest in over a decade. The industry's value growth—a combination of volumes and price-led expansion—slowed for the fifth straight quarter in the October-December period, according to Nielsen India. While rural demand remained stable, the research firm said urban consumption weakened.
Shares of ITC closed 0.6 percent higher, ahead of the earnings announcemt, while the benchmark S&P BSE Sensex closed 0.47 percent down.
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