ITC reports 17 per cent jump in profit

Kolkata, Jul 21 (UNI) Diversified conglomerate ITC Ltd today said its Q1 net profit jumped 16.8 per cent to Rs 652.28 crore as compared to Rs 558.30 crore in the corresponding period last year.

The total turnover increased 25.7 per cent to Rs 2850 crore driven by the non-cigarette businesses which grew by 44 per cent during the quarter, the company said in a statement.

The non-cigarette business now accounts for 50.2 per cent of the company's net turnover, it said.

Addressing shareholders at the 95th AGM, Chairman Y C Deveshwar said, " We have to deploy our energies to grow the FMCG segment. We will have to spend money for building brands in the FMCG segment.

These are new areas which will become cash cows in future. " Deveshwar said the company had grown by a compound annual rate of 12 per cent to Rs 68,000 crore and the company's investment plans of envisaging Rs 14000-15000 crore over the next few years would further enlarge ITC's economic contribution.

He said over the next 7-10 years the company plans to create a network of 20,000 e-choupals and over 700 choupal sagars entailing investments of nearly Rs 5000 crore thereby extending coverage to 100000 villages representing one sixth of rural India.

Referring to the allegations that ITC is hoarding wheat from the market, the ITC Chairman said, " We are not hoarding wheat. We are buying directly from the farmer and using it. " UNI TJP JYN DB1637