The actual net profit that will be shown on finalisation of results next month will depend on the provisioning made on account of losses made in the deal with ICICI and diminution in the value of intra-group assets acquired from ITC Classic including holdings in real estate companies.

Provisioning may also be required on account of portfolio investments of group investment subsidiaries the fate of which is still to be decided. The company chairman has on previous occasions made it clear that he wants to focus on the core businesses of tobacco, hotels, speciality paper and packaging and that all other subsidiaries would either be hived off or wound up over a period of time. AtFriday's board meeting, the company's business plans, its five-year corporate plan envisaging a substantial investment of over Rs 1800 crore in phases and the issue of brands promotion were discussed.

The company, it is learnt, has already firmed up investments amounting to around Rs 700 crore, the bulk of which will be in establishing the new factory in Bangalore and modernisation and upgradation of other cigarette factories in West Bengal, Uttar Pradesh and Andhra Pradesh.

The company's second half is expected to be better than the first half of 1997-98 when the company posted a net profit of Rs 301.73 crore, which was 67 per cent higher than the corresponding period last year. This, according to analysts, was largely possible due to an improved product mix and favourable prices of raw materials besides lower rates of corporate tax.

Sources were however not forthcoming on the pending litigations and the Fera case in particular. They refused to comment on the ground that the matter was sub judice. Thecompany is yet to reply to the show cause notices served by the enforcement directorate against some past and present directors for alleged Fera violations in its export operations in the early nineties.

In addition, the company is still to overcome the pressures of ITC Global Holdings Pte Ltd which is under judicial management and where the company does not accept any liability but is prepared to settle all pending disputes in order to protect its image of a responsible corporate entity. The losses of ITC Global are genuine business losses and once the dues are settled, the liquidation of the subsidiary will be completed.

On promotion of new brands of BAT, sources pointed out that Benson and Hedges had received an encouraging response in the country and there would be a time lag before the next launch of State Express 555 was announced. The timing of the launch was still to be decided by the marketing department but would in all probability be done in the current financial year.

According to analysts,the company's net profit after accounting for the restructuring charge on account of ITC Classic is likely to be Rs 555 crore on an equity base of Rs 245.4 crore, yielding an EPS of over Rs 22.