Indian cigarette manufacturer ITC has recorded an 18.7 per cent jump in its earnings for the second quarter, backed by strong revenues from cigarettes and hotels.

The company’s net profit stood at Rs 679.6 crore compared with Rs 572.33 crore in the same period last year.
Its net income grew 31.2 per cent to Rs 2,967.12 crore from Rs 2,261.21 crore. The earning per share in this quarter was Rs 1.81. The non-cigarette business now contributes 51.2 per cent of company’s revenue, even though the cigarette business continues to be the main driver of profitability. On pre-tax and interest basis, cigarettes accounted for 82.1 per cent of ITC’s profit in the second quarter.
Sequentially, the net income in the second quarter went up by 1.1 per cent over the first quarter of this year. On profit after tax basis, the sequential growth was 4.1 per cent over the first quarter of this year. The non-cigarette businesses during the second quarter grew by 53 per cent. The key growth drivers were the foods business, higher agri-business revenues and a strong performance by hotels and cigarettes. (pi)