Shares of FMCG major ITC today fell by over 4.5 per cent, wiping out a staggering Rs 13,577 crore in investor wealth, on lower-than-expected first quarter sales.
After falling nearly 7 per cent to Rs 350.20 in intra-day trade on the BSE, the scrip finally ended the day at Rs 358.80, down 4.57 per cent from its previous close.
ITC’s market capitalisation stood at Rs 2.83 lakh crore at the end of today’s trade compared to Rs 2.96 lakh crore yesterday.
On the NSE, the scrip tanked 4.74 per cent to close at Rs 358.
ITC, which holds maximum weight in the BSE benchmark Sensex, was the worst performer among the 30-bluechip scrips.
Fall in its share price was significant in pulling down the index by 285.92 points to 19,804.76. ITC alone contributed 111.19 points to the overall fall in the Sensex.
“ITC was down post Q1 results. It announced a net profit increase of 18 per cent this quarter, however, sales numbers missed market estimates,” said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Ltd.
Pressure on its cigarettes segment notwithstanding, diversified business conglomerate ITC Ltd today reported 18.05 per cent increase in net profit at Rs 1,891.33 crore for the quarter ended June 30, 2013, driven by good performance across business verticals. The company had reported net profit of Rs 1,602.14 crore in the corresponding quarter a year ago.
ITC’s net sales during the period under review increased by 10.31 per cent to Rs 7,338.52 crore as against Rs 6,652.21 crore in the corresponding period last year, the company said in a statement.
The company’s revenue from FMCG business increased by 10.56 per cent to Rs 5,282.05 crore in the quarter as against Rs 4,777.29 crore in the corresponding quarter last year.