ITC Q1 results: Net profit rises 28% to Rs 3,013 cr, revenue up 36%

ITC Ltd on Saturday reported a 28.6 per cent year-on-year (YoY) rise in its net profit at Rs 3,013 crore during April-June quarter. However, the net profit was lower than the Rs 3,748 crore reported in the preceding March quarter.

The company's operations were disrupted in the June quarter last year by the nationwide lockdown imposed to curb the spread of COVID-19 infections.

ITC's revenue from operations rose 36 per cent YoY to Rs 12,959 crore during the quarter ended June 30, 2021. Its revenue from operations stood at Rs 14,157 crore in the March quarter this year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 50.8 per cent YoY to Rs 3,992 crore on strong rebound across operating segments, the company said.

"Localised lockdowns and mobility restrictions imposed by states in a bid to contain the sharp increase in daily COVID-19 infections in the second wave rendered the operating environment during the quarter extremely challenging and impacted the strong recovery momentum witnessed in recent quarters. The situation continues to improve with the  progressive easing of restrictions and increased mobility from mid-June'21," ITC said.

Also Read: HUL Q1 net profit jumps 9.6% to Rs 2,061 cr; revenue up 12.8%

In the FMCG segment, cigarettes business posted a 32.9 per cent rise in revenue to Rs 5,122 crore. While cigarettes volumes had reached nearly pre-Covid levels in March quarter, the second wave of pandemic caused disruptions in convenience store operations during June quarter.

"Week-on-week improvement underway since mid-June'21 with most markets returning to normalcy and witnessing faster recovery compared to first wave," the company said.

The others segment of FMCG, which consists of branded packaged foods businesses, snacks, dairy and beverages, education and stationery, safety matches and agarbattis, among others, reported a 10.4 per cent growth in revenue to Rs 3,726 crore. The growth in the segment was driven by higher demand for health and hygiene and discretionary products.

The hotels segment, one of the worst affected by the pandemic, registered over five-fold growth in revenue to Rs 127 crore. ITC said the progressive recovery in the segment was impacted by the second wave, but business is rebounding with the easing of restrictions led by leisure destinations, staycations and weekend getaways.

Revenue of agri business grew over 9 per cent to Rs 4,091 crore, while paperboards, paper and packaging registered over 54 per cent growth in revenue at Rs 1,583 crore.

Shares of ITC closed 2.56 per cent higher at Rs 212.35 on the BSE on Friday.

Also Read: HUL is confident of navigating inflationary commodity costs, says CFO Ritesh Tiwari

Also Read: Twitter post says leaked data of Clubhouse users up for sale