ITC reports 21% rise in net profits in second quarter

ITC reports 21% rise in net profits in second quarterIndian conglomerate, ITC Ltd has reported an increase of 21.27 per cent in net profits to Rs 1,836.42 crore for the second quarter till 30 September, 2012.

ITC had recorded a a net profit of Rs 1,514.31 crore during the same quarter of the previous financial year, the company wrote in a filing with the Bombay Stock Exchange (BSE). The net sales of the company rose to Rs 7,146 crore during the second quarter compared to Rs 5,974.18 crore recorded in the second quarter of the previous year.

On a quarter to quarter basis the net profit increased 15 per cent from Rs 1,602 crore during first quarter till June 30, 2012. The company said that the higher profits were mainly due to increased sales from branded packaged foods, agri-business and cigarettes divisions.

"The performance is particularly remarkable when viewed against the backdrop of the challenging business environment in which it was achieved, namely a slowdown in economic growth, sustained high inflation and impact of the steep hike in taxes on cigarettes during the year," the company said in a press release.

The shares of the company rose 1.87 per cent from its previous close and were trading at Rs 296.85 on the BSE.