The company has made a one-time charge to the profit & loss account of Rs 53.5 crore on account of the merger of ITC Classic with Industrial Credit & Investment Corp of India.

Gross income has gone up to Rs 6927.37 crore from Rs 5990.60 crore. Other income is lower at Rs 93.21 crore against Rs 97.56 crore. Net sales have risen to Rs 3074.85 crore from Rs 2814.95 crore.

Profit after interest but before depreciation and tax has increased to Rs 877.33 crore from Rs 649.68 crore. After providing for depreciation of Rs 85.85 crore, the profit before tax works out to Rs 791.48 crore against Rs 586.65 crore. In 1997-98, the company has provided Rs 265.28 crore for tax against Rs 239.75 crore in the previous year.

Appropriations from profitsinclude Rs 55.05 crore to debenture redemption reserve, Rs 200 crore to the general reserve and Rs 110 crore to the contingency reserve out of unappropriated profits leaving undistributed surplus of Rs 160.95 crore.

The company's export earnings increased in 1997-98 to Rs 759.08 crore from Rs 634.73 crore. Exports picked up momentum in the second half at Rs 413 crore against Rs 346 crore in the first half.

ITC chairman Y C Deveshwar said the company had chalked out a strategy to make the core businesses more competitive. "We would like to test this by exporting our produce to benchmark quality and cost competitiveness."