ITC Q2 results: Net profit rises 14% to Rs 3,697 crore, revenue up 11%

ITC on Wednesday reported a 13.7 per cent year-on-year (YoY) rise in net profit for July-September quarter at Rs 3,697 crore on the back of a strong pick up across all operating segments after severe disruptions in the preceding June quarter.
 
The company's net revenue grew 11.2 per cent to Rs 12,543 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 12.9 per cent to Rs 4,615 crore.
 
"After significant disruptions in Q1, cigarette volumes witnessed smart recovery with exit volumes at near pre-Covid levels," the company said, adding that the recovery in volumes was faster than that witnessed during the first wave of the pandemic.
 
Cigarette segment's revenue rose 10.2 per cent YoY to Rs 5,642 crore. The others segment in FMCG category registered a 2.9 per cent growth in revenue to Rs 4,036 crore.

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ITC said that the FMCG business delivered a resilient performance, growing on a high base quarter. Discretionary and out-of-home consumption saw a sharp rebound during the quarter. The staples and convenience foods witnessed moderation in YoY growth on a high base, however, it remained well above the pre-COVID-19 levels.
 
The revenue of hotels business grew to Rs 295 crore from 82 crore in the year-ago quarter as it saw a marked improvement in occupancy. While leisure destinations continue to perform well, business travel is gathering momentum, the company said.
 
The agri business registered a 7 per cent decline in revenue Rs 2,776 crore, while paperboards, paper and packaging saw 25.4 per cent rise in revenue at Rs 1,830 crore.
 
"Reduction in the intensity of the pandemic along with a pick-up in the pace of vaccination led to improvement in the demand environment and consumer sentiment during the quarter. However, unprecedented inflation in key input costs coupled with significant disruptions in global supply chains and logistics weighed on the operating environment," ITC said.
 
Shares of ITC on Wednesday closed 0.68 per cent higher at Rs 238.40 on the BSE.

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