MUMBAI: Diversified group ITC Ltd on Friday reported a six per cent increase in its standalone net profit at Rs 2,639.84 crore for the quarter ended September 2017 compared to Rs 2,500.03 crore registered during the preceding quarter.
The Kolkata-based conglomerate’s total income during the quarter under review stood at Rs 10,258.13 crore. It is not comparable with the previous quarters due to the introduction of GST from July 1.
“In accordance with Indian accounting standards, 18 and Schedule-III of the Companies Act, 2013, GST, GST compensation cess and VAT etc are not included in the total income from operations,” the comapny said in a statement.
Revenue from its flagship cigarettes segment fell to Rs 4,554.21 crore during the September quarter against Rs 8,528 crore a year ago, a decrease of 47 per cent.
“Pressure on the legal cigarette industry escalated significantly during the quarter on account of steep increase in tax incidence under the GST regime and additional burden on the business due to GST transition costs,” it added.
Besides, the cigarettes business also had to factor in additional costs related to GST transition due to non-availability of additional duty surcharge credit on transition stocks.
Other biz revenue
ITC’s hotels business posted an income of H300.18 crore, driven by growth in average room rates. The agriculture busi-ness saw an increase in revenue at H1,968 crore. The paper and packaging business saw muted growth at H1,309.41 crore