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ITC Ltd has reported a 13 per cent, year-on-year, jump in net profit to ₹3,174 crore in the first quarter of this fiscal. Net profit in the year-ago-period stood at ₹2,819 crore.
During the quarter under review, revenue from operations stood at ₹11,503 crore, a 6 per cent year-on-year rise (₹10,875 crore).
According to a media statement, “steady performance during the quarter amidst sluggish conditions” was driven mainly by verticals Paperboards, Hotels and FMCG-Others (excluding the Lifestyle Retailing Business).
FMCG business
Cigarettes accounted for 48 per cent of the gross revenues and 80 per cent of the profit before tax.
In the FMCG-Others segment, revenue grew by 7 per cent, YoY, to ₹3,060 crore despite a marked slowdown across urban and rural markets.
ITC said, on a comparative basis, excluding the lifestyle retailing business, FMCG-Others business (that include atta, potato chips, premium cream biscuits and noodles, handwash & bodywash, and notebooks) witnessed an 8 per cent growth.
“Segment Ebitda recorded a growth of 41 per cent despite stepped up investments in brand building, gestation and start-up costs of new categories / new facilities,” the media statement said.
Other businesses
The hotels business saw a 15 per cent revenue growth, year-on-year, to ₹393 crore driven by the recently commissioned properties. Segment profit (before tax), however, saw an over 20 per cent drop YoY to ₹10 crore. “The subdued performance of existing hotels was relatively subdued due to slow down in conference and banquet segments,” the statement said.
Agri-business and ‘paperboard, paper and packaging’ businesses also witnessed a growth in segment revenues and profit (before tax).
ITC stock, on Friday, closed at ₹264.60, down by 1.12 per cent at the BSE.
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