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Diversified conglomerate ITC registered 13 per cent growth in net profit at ₹4,156 crore for the quarter ended December 31, 2021, as compared to ₹3,688 crore in the same period last year. Gross revenue witnessed a growth of 31 per cent to ₹16,634 crore against ₹12,673 crore last year.
The company’s board has recommended an interim dividend of ₹5.25 per share for the financial year ending March 31, 2022.
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Robust growth across segments
The company has witnessed robust recovery across markets aided by an increase in mobility, and agile supply chain and market servicing. Revenues from the cigarette business grew 14 per cent to ₹6,244 crore (from ₹5,498 crore) and revenues from the FMCG others segment was up by nine per cent at ₹4,091 crore (₹3,744 crore).
In the FMCG segment, the company has witnessed good growth in discretionary/out-of-home categories such as snacks, frozen snacks and beverages. The hygiene portfolio continues to witness demand volatility in line with Covid caseload intensity and remains significantly higher than pre-pandemic levels, the company said in a press statement.
The sharp escalation in input costs was largely offset through strategic cost management programs, premiumisation, judicious pricing actions, fiscal incentives and favourable business mix.
E-commerce sales continued to grow rapidly during the year with sales at nearly 3X of FY20 level; channel salience stands at around seven per cent. The company continues to augment product availability and accessibility by leveraging new routes-to-market through strategic partnerships.
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‘Perfectly aligned with long term goal of Atmanirbhar Bharat’Agri-business revenues grew by nearly 100 per cent year-on-year to ₹4,962 crore during the period under review from ₹2,482 crore last year. The sharp growth in the segment was driven by wheat, rice, spices, leaf tobacco exports. There has also been a good growth in the value-added portfolio.
“Proactive supply chain management ensured on-time execution despite significant operational challenges posed by container shortages, port congestions and elevated ocean freight costs,” the release said.
The paperboards and packaging business grew by nearly 38 per cent to ₹2,046 crore. Growth in revenue was aided by demand revival across most end-user segments, exports and higher realisations. The value-added paperboard segment grew at a rapid pace aided by higher realisation, strategic capacity expansion and strong exports performance.
The hotels business more than doubled to ₹473 crore from ₹235 crore. Occupancy has recovered to pre-pandemic levels and there has been a strong sequential improvement in ARRs but remains below pre-pandemic levels, it said.
The company’s scrip closed at ₹234.30, up by 1.14 per cent on the BSE on Thursday.
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