ITC, India's largest FMCG company, has registered a growth of 14% in the net profit for the three months period ended March 31, 2008.

The performance of the Kolkata-based company got a fillip from higher cigarette sales of its premium brands such as India Kings and Gold Flake.

Profits during the three month period ended March 31, 2008, zoomed to Rs 736 crore from Rs 651 crore during the corresponding period of the last year.

The company’s sales climbed 16% to Rs 3,934 crore during the period under review as against Rs 3,466.34 crore registered during the same period last year.

The Board of Directors of the company declared dividend of Rs 3.5 per share of Re 1 each for 2007-08, as compared to Rs 3.10 in the preceding financial year.

In a declaration, the company said that the growth in profits was mainly due to higher sales of ‘Sunfeast' brand of biscuits, ‘Aashirvad' flour and ‘Bingo' potato chips. IN contrast, the sales of packaged food ascended 57% during the full year ended March 31, 2008.

The sales of Aashirvaad and Sunfeast brands touched about Rs 1,000 crore mark each, the company added.

During the year, the sales of lifestyle retailing business soared 26% as the company used fashion shows and other avenues to push the ‘Wills Lifestyle' brand into the premium group and launched products including ‘Essenza Di Wills' and ‘Fiama Di Wills' range of personal care products.

The company’s stationery business also showed brilliant growth of 72% during the year ended March 31, 2008, helped by ‘Classmate' and ‘Paperkraft' brands using premium elemental chlorine free paper.

According to FMCG analysts, ITC’s income will be subdued during the coming quarter ended June 31, because of a 6% increase in the excise duty and imposition of VAT at 12.5% ad-valorem, in addition to an increase in the prices of wheat, vegetable oil, maize and skimmed milk powder.