ITC Q2 Results: PAT grows 3% to Rs 5,078 crore, revenue rises 16%
ITC Ltd on Thursday reported a 3% year-on-year (yoy) growth in its net profit at Rs 5078.34 crore for the second quarter ending September, while gross revenue from sale of products and services went up by 16% yoy at Rs 20,359.95 crore which the company attributed to the agriculture and hotels businesses.
The conglomerate said the “resilient performance” was at a time when demand was subdued, the country faced unusually heavy rains, high food inflation and sharp escalation in certain input costs such as that of wood and leaf tobacco.
ITC’s Q2 revenue was ahead of street estimates while net profit was in line with the expectations. Nuvama Institutional Equities said ITC’s cigarette sales volume grew by 3.3% yoy last quarter which too was ahead of street estimates.
The company’s cigarette business net segment revenue went up by 7% yoy at Rs 8177 crore while segment profit before interest and taxes (PBIT) was up by 6% yoy at Rs 5023 crore. ITC said the premium segment continues to perform well while there has been a sharp cost escalation in leaf tobacco which is partly mitigated through improved mix, calibrated pricing and strategic cost management.
ITC’s non-cigarette FMCG business segment revenue went up by 5% yoy at Rs 5578 crore, while the business EBITDA went up by 2% yoy which is a 35 basis points drop in margins which the company attributed to inflationary headwinds in input costs. The company said the notebooks segment was impacted by high base effect and “opportunistic play by local brands led by sharp drop
