Cigarette major, ITC, may hike the prices of some food products as the rupee’s plunge to a record low, is threatening to eat into the margins of the company. Although ITC’s foods business is juvenile than many other established players around and less fetching than its tobacco business, but the company’s Bangalore-headquartered division, which has crossed Rs 3,000-crore-mark in terms of turnover, cannot be taken for granted.
The depreciation of the Indian currency has prevented the company’s ace rivals, like, ITC, Britannia Industries and other makers of processed foods from benefiting from an 11% drop in prices of edible oil, being imported from Indonesia and Malaysia. Emerging as the worst performer amongst the other Asian currency, the rupee weakened 23% against the dollar in the past year.
The company’s net profit for the fourth quarter ended March 31, 2012 surged by 25.98% of Rs 1614.36 crore as compared to Rs 1281.48 crore for the quarter ended March 31, 2011. For the Year ended March 31, 2012, the company’s net profit registered 23.55% growth at Rs 6162.37 crore as compared to Rs 4987.61 crore for the previous year. Company’s total income has increased by 17.97% to Rs 25999.16 crore for the year from Rs 22038.80 crore in the previous year.
Segment wise, the company’s revenue from Cigarettes registered 17.4% (Y-O-Y) growth for the quarter ended March 31, 2012, at Rs 3249.9 crore; revenue from FMCG division grew by 23.2% at Rs 1616.5 crore, Agri business grew by 30.7% at Rs 1414.2 crore, while it’s Paper and packaging Business registered 6.9% growth at Rs 979.9 crore.
| Company Name | CMP |
|---|---|
| ITC | 306.80 |
| Godfrey Phillips | 2207.10 |
| VST Industries | 265.10 |
| The Indian Wood Pro. | 34.45 |
| NTC Industries | 172.00 |
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