ITC Profit Rises 21 pc YoY to Rs 4,466 cr in Q2 FY23
ITC Profit Rises 21 pc YoY to Rs 4,466 cr in Q2 FY23

ITC Ltd’s net profit for the quarter ended September rose nearly 21 percent on year to Rs 4,466 crore. The revenue net of excise duty increased by nearly 27 percent to Rs 16,129.91 crore. The net profit and revenue were above Rs 4,315 crore and Rs 15,884 crore, respectively.

The hotel business saw a sharp recovery on the resumption of business and leisure travel. This segment’s revenue rose by a whopping 82 percent on year to Rs 536 crore. The agricultural business, the third major contributor to revenue, witnessed a 44 percent on year rise in revenue to Rs 3,997 crore.

The paperboard and packaging business reported a 25 percent growth in sales to Rs 2,288 crore ITC’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter rose more than 27 percent on year to Rs 4,835 crore. But operating margin expansion was just 18 basis points from the previous year to 29.97 percent.

SEGMENT PERFORMANCE

Stability in taxes enabled continued recovery in cigarette sales volumes from illicit trade, the company said in a release. The profit before interest and tax (PBIT) for this segment grew by nearly 24 percent during the year. The non-cigarette FMCG business reported strong growth on the back of a recovery in out-of-home and discretionary categories. Further, the stationery products business witnessed strong traction. This segment’s operating margin improved 170 bps sequentially to 9.5 percent, even though it dipped by 50 bps YoY. The company’s multi-pronged interventions helped mitigate the inflationary pressure.

Strong exports of wheat, rice, and leaf tobacco drove the performance of the agricultural business, while higher demand across end-user segments and sustainable products portfolio aided the paper and packaging business in the quarter. “The anticipated moderation in inflation going forward, normal monsoons in most parts of the country, and proactive interventions by the government and RBI augur well for sustained recovery and a pick-up in consumption expenditure in the second half of the year,” the company said in the release.

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