ITC reports 30% rise in Q1 net profit at Rs 3,343 crore
Cigarette-to-hotel conglomerate ITC Ltd on Saturday reported 30 per cent rise in consolidated net profit at Rs 3,343 crore for the first quarter of current financial year (Q1FY22). The same was Rs 2,567 crore in the June quarter of last year.
Its revenue from operations rose 36 per cent per cent to Rs 14,240 crore as against Rs 10,478 crore in the year-ago period.
However, on a sequential basis, the profit after tax (PAT) fell 12 per cent. It was Rs 3,816 crore during the March quarter (Q4FY21).
The FMCG major said it has seen strong rebound across operating segments despite constraints in the wake of the second coronavirus wave.
Segment wise, the revenue from the FMCG-cigarette business came in at Rs 5,802 crore, up 34 per cent from Rs 4,330 crore reported in the last year period. The profit before tax (PBT) of cigarette business too rose 36.5 per cent at Rs 3,461 crore in the first quarter.
On the cigarette business, it said the strong volume recovery momentum witnessed in the second half of FY21 was impacted by localised lockdowns and restricted hours of convenience store operations in the wake of second wave of the pandemic.
However, ITC said there has been week‐on‐week improvement in market conditions from mid‐June with most markets returning to normalcy.
The non-cigarette FMCG business or FMCG-other segment clocked a revenue of Rs 3,731 crore, up 10 per cent year-on-year, while the PBT of the same came in at Rs 174 crore.
The revenue from hotels segment more than tripled to Rs 134 crore as compared to a meagre Rs 25 crore in year-ago period. The agri business revenue rose 9 per cent, while that from the Paperboards, Paper & Packaging surged 54 per cent.
On Friday, ITC’s scrip traded 3 per cent higher, its sharpest intra-day gain in two months ahead of the results, before eventually closing 2.63 per cent higher at Rs 212.45 on NSE.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
