ITC Ltd on Friday posted a 20 per cent decline in standalone net profit at ₹3,232 crore for the quarter ended September 30, 2020, as compared with ₹4,023 crore in the same period last year.

Revenue from operations on a standalone basis increased marginally to ₹11,977 crore (₹11,871 crore).

Total expenses grew 8 per cent to ₹8,312 crore (₹7,718 crore).

Segment revenue on a standalone basis from the cigarettes business witnessed a 4 per cent decline to ₹5,121 crore (₹5,327 crore) while revenues from the non-cigarette FMCG business grew 15 per cent to ₹3,795 crore (₹3,288 crore).

Revenues from the hotel business witnessed a decline of 81 per cent to ₹82 crore (₹427 crore) during the period under review. Agri business grew 13 per cent to ₹2,985 crore (₹2,648 crore) while the paperboards division witnessed a decline of 7 per cent in revenues to ₹1,459 crore (₹1,565 crore).

Covid impact

The hotels business continues to remain adversely impacted due to restrictions on travel and tourism while the closure of educational institutions across the country weighed on the performance of the education and stationery products business. “The impact of negative operating leverage was partially mitigated through relentless focus on cost reduction,” the company said in a statement.

On a consolidated basis, revenues grew 2 per cent to ₹13,148 crore (₹12,867 crore). The net profit declined by 18 per cent to ₹3,419 crore (₹4,174 crore).

ITC had, in July, acquired 100 per cent of the equity share capital of Sunrise Foods Pvt Ltd.

Consequently, Sunrise and its two wholly owned subsidiaries — Hobbits International Foods and Sunrise Sheetgrah — became wholly owned subsidiaries of the company, ITC said in its notes to account to BSE.

The company’s scrip closed at ₹173.95, down by 0.49 per cent, on the BSE on Friday.

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