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Cigarette-to-soap maker ITC on Thursday reported a 10.32% year-on-year growth in its standalone net profit to ₹4,926.96 crore for the second quarter this fiscal, although its gross revenue witnessed a 3.40 per cent y-o-y growth during the period.
The diversified conglomerate’s net profit stood at ₹4,466.06 crore for the second quarter last fiscal. During the period under review, its gross revenue rose to ₹17,548.75 crore from ₹16,971.18 crore a year ago, according to the stock exchange filing.
The company, in a media statement, said during Q2FY24 its gross revenue, excluding wheat and rice exports, was up 8.9 per cent y-o-y.
During the quarter, revenue from the company’s cigarette business rose 10.12 per cent y-o-y to ₹7,657.73 crore, while operating profit from the segment increased 7.96 per cent y-o-y to ₹4781.72 crore during the period. The company, the country’s largest cigarette maker, said the cigarette business continued to counter illicit trade and reinforce market standing by fortifying the product portfolio through innovation, democratising premiumisation across segments and enhancing product availability backed by superior on-ground execution. The differentiated variants launched recently continued to perform well.
During the quarter under review, non-cigarette FMCG business registered 8.32 per cent y-o-y growth in its revenue to ₹5,291.60 crore, while the segment posted a 36.82 per cent y-o-y growth in operating profit at ₹438.60 crore during this period. The company said the non-cigarette FMCG business continued to deliver strong performance on a high base. Segment EBITDA margins expanded 150 basis points y-o-y to 11 per cent.
During the period, the hotel segment revenue grew 21.2 per cent y-o-y on a high base. Segment PBIT was up 50 per cent y-o-y (about 7.2x of Q2 FY20). “Stellar performance” across properties was driven by retail and MICE segments, the company said. Segment EBITDA margin was expanded by 170 bps y-o-y to 30.7 per cent, driven mainly by higher RevPAR, curated packages, finest F&B offerings and strategic cost management initiatives.
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