Growth Away from Cigarettes

Growth Away from Cigarettes Hansavivek ITC's overall turnover for 1979-80 amounted to Rs 456 crore against Rs 421 crore in the previous year, but the increase was more than offset by higher payments to government on account of cigarette excise and other duties which aggregated Rs 318 crore against Rs 269 crore, leaving a lower net turnover of Rs 138 crore compared to Rs 152 crore previously. The company's net realisations, excluding excise and other duties, from business operations other than the traditional cigarette business, have been growing over time and presently constitute 29 per cent of the total net realisations. The hotel business has been particularly progressive and has registered a 25 per cent improvement over the previous year. Total gross profit has increased from Rs 16.17 crore to Rs 17.44 crore and, with tax incentives availed by hotels, net profit is up from Rs 4.63 crore to Rs 5.60 crore. The unchanged dividend of 15 per cent is thus covered 1.62 times against 1.36 times last year.